What value does privacy hold for us this day in age?

During my research I consistently found Mark Zuckerberg's name (aka: the "creator" of facebook), it was popping up left and right! As I researched more into the values of privacy I kept finding things Zuckerberg had said, or something that his associates would say about him.
In one such instance there was an interview and the interviewer published in his findings an off the record statement (guess that shows how much the reporter cared for the interviewee's privacy. The statement was: "Off record chat w/ Facebook employee. Me: How does Zuck feel about privacy? Response: [laughter] He doesn't believe in it." is it Zuckerberg doesn't believe in it, or does he just see it in a different light? Zuckerberg said in an interview once that (paraphrased) he believed that it was now a social norm to not have privacy, because people give out personal information to people all over the world now.
When living in a digital age I suppose this was merely a matter of time. But the value of privacy is still held by many. The American Library Association is taking steps in regaining some privacy. A large step in this is simply awareness, and having people know and understand what sort of information they are giving out on a day to day basis.
If you looked at the values of privacy on a time line it may look something like this, from the 1930's to now 2011 with every decade; moreover with every technological leap that is made, a little more "privacy" is sacrificed. We are living in an information age now, where in the world of technology if you have information you have power. The everyday-man(or woman) has this power to a slight degree. If you give out more of your own views on sites like wireclub and myspace you become more popular. If you keep your profile private you don't get many views, or many "friends" thus creating a world where: if you give personal details of your life to people- people like you- when people like you- you feel popular. So is this where the trails leads? Is the value of privacy the price of popularity?
Let's look at this in a social setting. There's a party at your friend's house. You go dressed in just plain pants and a hoodie. When you arrive at the party you don't talk to anyone you don't know, and sit in the corner talking briefly with only those who approach you. When the party ends how "popular" are you?
Now imagine that party but this time you're dressed to the 9's guy or girl, you're sure heads will turn when you walk in the door. Once inside the house you grab a beer hit the toke then attack the dance floor with just confidence. You start talking to anyone, you tell goofy stories of things you've done. You confess to things that others would think you should keep secret. At the end of the party how popular will this person be? Probably a lot more than the person who keeps quiet.
Through my research I am starting to believe that the value of privacy this day in age is simply put: the cost of popularity.