Indeed. I could see this getting used for a lot more than just music. Especially since it's so tightly integrated with something I already use a lot. And there's no privacy issue.
i think you mean there's no privacy issue yet. facebook didn't have nearly the level of privacy hand-wringing that it does now when it was only open to students at select college campuses. but along came employers, and parents, and all sorts of other groups, and suddenly this "safe place" was full of people whose intentions did not match your initial expectations. same will easily happen to any network that reaches a certain size, ubiquity, etc.