I don’t think it’s a case of Facebook has lost the plot so much has Facebook never understood the plot. Zuckerberg and his pals were students when they launched the business, and in common with most students (especially in tech related fields, and sadly with a lot of Silicon valley billionaires who are well past their student days, they guys had and still have heads full of book learning and theory and a dearth of life experience.

They just don’t understand how human beings and human communities work. And that is why when they try to ‘fix’ an error, they often make things worse.