Re: Is this what we really need?
"Do we mainly need foolproof encryption or do we need enough security to make scams, phishing etc mostly unprofitable?"
Yes, you need BOTH. Without foolproof encryption, no one will be inclined to use it, or a better fool will find a way to make things miserable for all of us. And without some way to assure identity, scams and such will ALWAYS be prevalent, since they all depend on anonymity (or at least pseudonymity) to operate. And since the return for just a few hits makes whole campaigns profitable, you can't defeat the money angle without collateral damage.
"Do we need a way to easily recognise friends when they connect to our web servers."
Yes, otherwise Mallory or Gene can POSE as your friends.
"Even if their systems are compromised, it shouldn't compromise everyone else I know, because I've given them all their own certificates for connecting to my systems, so I can run my own "facebook-wall" which they can reference on their "facebook-wall" but which stays firmly under my control, on my servers."
Governments have shown the patience needed to reconstruct trails. They'll take over one identity, use it to get to another, and so on.