Can't comment about the death of the family, although very sad, that happens and not only on Facebook.
"Cyber Bullying" isn't new, been around way longer than Facebook and to be fair, that can happen via texting, phone messages or anywhere in this satellite mad world. Just one of those www things I guess. Along with the awesome side of the world wide web you get child porn, live killing videos, spammers and Internet bullies. Use it carefully like you would on any forum, online bank or email account and you have nothing to worry about. People who put their date of birth, phone #s and all their details are just asking for trouble and will get themselves in bad situations and to be blunt, they reap what they sow, it's that simple. A little common sense goes a long way.
Having said all that, Facebook (like any site) isn't for everyone.