Social network targeting problem

Interesting that MySpace has been able to up its click-through rate by 80% by targeting ads more closely to its users when, according to a press release I just received from Webitpr, a third of social networking users falsify their personal details due to privacy concerns. What commercial value does a social network bring to the table? Deep insight about its users. Which value becomes...rather questionable if they're making up their details over privacy and ID-protection concerns. Oh dear.