ATD says "the phone is planned to run on a modified version of Android that Facebook has tweaked heavily to deeply integrate its services." Now, if that means a Kindle Fire take on Android—basically making it unrecognizable—that could be a great thing. But if it means stuffing Android with lots of Facebook links, it could be a race car wreck.
But here's a more urgent point—do we need this? Don't we already have this? "Facebook has worked to take things a step further," AllThingsD alleges, "allowing users to upload photos directly from the picture-taking app, or to integrate Facebook contacts with the phone's address book." You mean like Windows Phone 7 does? You mean like WebOS did from day one? What hole is Zuckerberg trying to fill here?