It's no surprise that the 'default' settings are the ones that are most advantageous to FB and their available income. It's 'free' for the user and they are constantly searching for new ways to make advertising attractive to the people who are willing to pay for it. The more targeted and personalized the advertising, the more effective it can be and hence more 'sale-able'.
Its an old message and not entirely correct. (Which Friday, and its been going around the circuit for at least two years)
The settings page still shows it as if they enable it in the future.
Turning the options off does not stop your details popping up on friends or common group member screens.
go through all the security options in Facebook and make sure you have an idea what you are letting happen to your info on Facebook. But whatever you do never put anything on Facebook that you don't want anyone to find out.