I think you are being paranoid if you refused the permission level settings when the linked-in facebook app connection screen came up. But watch out for selective memory; don't rule out the possibility that you gave permission. Also possible that you didn't think you were giving permission, but were, because the facebook connect privacy options are needlessly (intentionally, IMHO) obfuscated. I'm just postulating of course, no idea or accusations regarding you did.

But it's heavily in FB's best interest to respect the privacy settings they offer, particularly with regard to 3rd parties. Their stock is still suffering, they have earned a very bad public image as untrustworthy, and I predict legislation targeting them is almost certainly coming down the line. Even anti-trust action against them isn't that outlandish in a few years assuming they continue to integrate more and more of the population and integrate their 3rd party services more and more. FB connect is on a fast course to be the primary authentication method of the internet, at least in the United States.

IANAL, but I doubt being shady with this information would result in anything more serious than a class action suite. But the stakes are too high for them to want to risk that intentionally. All of their privacy screw ups have been due to incompetence.

And LinkedIn is a big competitor for them! It is in a different niche, but it's still a place people can go and do social networking other than FB. Less eyeball time on FB is less ad revenue.

So yeah. Put the tinfoil back in the drawer my man. :)