The Google team has been posting on their blog about the fact that Facebook does not want to join up with Friend Connect
http://google-code-updates.blogspot.com/2008/05/how-google-friend-connect-works.html
The Google team stress that Google Friend Connect puts users in control over whether they're connected to their data on Facebook and then says Friend Connect only reads a small amount of user data from Facebook using Facebook public APIs.
Google are so smart. They are successfully portraying Facebook as monopolistic and you can understand why Facebook is concerned about linking up with Google. But I don't think Facebook has much choice. They can't sit in their castle fuming.