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Passion Flight
I really am not sure about the efficacy of display ads on FB, only recently have I started to get ads that are in any way relevant to me. You can find the POV here and let me know what I got wrong!
http://www.mb-blog.com/Images/POVAugust2008Soci...
One thing you should explore further is the resonance of advertising in highly intimate environments. Rich, emotional and disruptive display (or rich media) simply seems totally obtrusive (and usually irrelevant) in highly intimate venues. That's probably why Gmail can actually get away with advertising in the intimate environment of private email -- by sticking with text ads. Facebook, while huge, is still a somewhat closed and intimate environment. Conversely, blogs, which are open, non-intimate venues (from a reader perspective), seem to accept display advertising much better. (Although I tend to dislike any advertising that distracts me from the core content, or simply interrupts.)
Good post!