Facebook Banned in Schools by large Companies - Old News?

I find it interesting that, just a little while ago, there was a giant cry of outrage from many people I know, saying that the ban in certain schools across the province, heck, the continent, against Facebook.com is a bad idea.
Now, I understand both sides of the argument; the schools that say that Facebook isn't schoolwork, and that it's a distraction that can lead to cyber-bullying. Yes, this can be true, but there's also the student's side, which says that that Facebook is an innocent networking tool, and that taking students off the site by blocking it will inhibit them somehow. Either with communicating with people in different continents, or to work on the newest science project with your partner.
It's funny, because it's not usually the schools that control which sites are allowed and which aren't: there are companies hired with the specific purpose of finding the sites that may be "hazardous" to students. So, if one company blocks Facebook, then the entire censor network they run will block it.
Recently, in the Ontario Provincial government, the minister of Government Services, condoned the blocking of Facebook, and it joined the ranks of sites such as YouTube, and many online gambling games.
"[...]"The Internet website that you have requested has been deemed unacceptable for use for government business purposes," the warning reads.
Facebook joins YouTube, online poker gambling websites and hardcore sex sites as verboten in any provincial government office across Ontario, said Government Services Minister Gerry Phillips.
But similar rival MySpace is still accessible to provincial government employees at work.
Facebook is prohibited from being used on computers in some – but not all – federal departments in Ottawa but the provincial ban affects every Ontario ministry. [...]"

Excerpt, The Toronto Star, May 03, 2007, "Facebook banned for Ontario staffers" by Robert Benzie.
http://www.thestar.com/News/article/210014

Then, I ask this question; I heard a lot about this issue a while ago, then, well, it basically dissipated. I haven't heard anything really about this as of late. So, is the issue getting old? Maybe. But I still think that, if students really think Facebook helps at school, then we should push to have it allowed again.