What I'd like to see...
...is the ability to create groups for your friends, which you can then assign privileges to (FB does allow you to group friends but doesn't allow you to set privileges by group), in much the same way as you administer user groups on an office network. This way, I'd assign four main groups: Immediate Family, Extended Family, Good Friends, and Acquaintances. Then I'd be able to post stuff that I only want my family members to see, as well as stuff I only want good friends to see, etc.
Yes, I know that people have the Save Picture and Ctrl-C/Ctrl-V abilities, but I also have a trust network with certain people, in that I know that my mother and father, for example, would not show anyone else something I intended only for them. Knowing who I can trust not to reveal something IRL is a major part of how I would assign friend privileges on FB. As it stands, I'm careful in what I post on there because this functionality is not available.
Finally, I have all my privacy settings maxed out and they're going to stay that way. Anyone searching for me can see my profile picture and name and that's it. And I have one simple rule in using FB: If I don't already know and like you IRL, I will not friend you on FB. For me it's a tool for communicating with friends and family. I have a blog for everyone else.