Okay, it is The Consumerist. I see a lot of alarmist things on The Consumerist. This is quoted content from the Facebook terms of service and does not seem to be misrepresented in any way.
Update It looks like “We Can Do Anything” has trended to the #1 trend on Twitter as of 10:17 pm:
A co-worker also posted a Reference to the Bill of Rights for Users of the Social Web on her blog in response. It looks like Facebook is guilty of violations across the board now.