But on a restricted basis. According to a Columbus Dispatch article, students must use Facebook's privacy settings, limiting it to "friends" only.... as well as coaches and academic advisors. A step in the right direction but also interesting given that students at my small liberal arts college often have 300-400 "friends".
Having coaches and academic advisors monitor the profiles may have the desired educational effect, however. Just the knowledge alone that a coach or academic advisor is reading their profile will probably cause them to think twice about what they post.
On a side note: According to the article, Facebook has 7.5 million users. The current statistic on MySpace is 83 million users. Wow.