Steve Ballmer doesn't get it

What Zuck should have said

    Tongues wagged in Palos Verdes, the gorgeous site of the conference just south of Los Angeles, at the thrashing The Wall Street Journal's Walt Mossberg gave Facebook's Zuckerberg over privacy issues.

    Here's my take. Mossberg had a point, arguing that Facebook's generally confusing and "opt-out" approach to privacy controls isn't kosher. The thing is, Mossberg didn't know when to stop. He came across as a mean old man, refusing to offer a gesture of decency when Zuckerberg obviously was so uncomfortable that he was sweating profusely and had to remove his cherished hoodie. For his part, Zuckerberg held his own, and continued speaking cogently through the perspiration, no mean feat.

    Writing lines from the audience is easy, but here's what the CEO of one of hottest companies in Silicon Valley might have said to Mossberg: "Look, this is how we've decided to do it. We *think* that's cool with *most* of our users, though we're absolutely listening. No one is forcing you to use Facebook, any more anyone is forcing you to buy an iPad. We're open to your criticism, but if at the end of the day you're that upset about our opt-out approach, stop using Facebook."

    On a separate note, for all the energy expended on an interesting but narrow topic, no one got around to asking Zuckerberg any questions about the many business issues facing Facebook. Wouldn't it be great if Zuckerberg came to Fortune Brainstorm Tech in Aspen next month and had a genuine business conversation about Facebook?

Why Tim Armstrong makes AOL compelling

    Kara Swisher asked the CEO of AOL (AOL) an insightful question. To paraphrase: Why build such an impressive management team of ex-Googlers (like Armstrong) and other Internet powers for such a relatively small and declining company like AOL.

    Armstrong is so darn believable you almost forget that AOL is just what Swisher says it is. And yet, when Armstrong says the Internet pioneer remains a powerful brand with consumers and can make a contribution to local journalism across America you just start to get sucked into thinking maybe AOL can be viable again.

    Armstrong, by the way, will join Fortune in Aspen. We'll start working on insightful questions for him now.

Power table

    Seated at the table next to mine the opening night of the D conference: Facebook's Sheryl Sandberg, Wendi Murdoch, Steve Jobs, Mark Zuckerberg, FCC Chairman Julius Genachowski, Rupert Murdoch. Not bad.