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I think like anything, you can be as open or as closed as you want when you are online, whether it be facebook or any other online activities.
I am on facebook, and I do use it to keep up with family. My immediate family, yes, we can communicate easily via phone or email, but to see our extended families, (about 80 cousins, aunts, uncles, neices, nephews, 2nd cousins, etc, etc, etc) it is a good way to keep up with the happenings of the family.

Thinking back 20-30 years, annually, we had a reunion and this was how we kept up with the masses, but in the past 20 years or more, our family, which used to live in 1-2 counties in PA, now is in 20 states, and thousands of miles between some of us.