The issue is not necessarily that the information is being collected. The issue is that users must have information about what is being collected and be put in a position to make a meaningful choice about the tradeoff of using the application or not.
It came to my attention looking through my own Facebook Timeline that children being born now could very well have their entire lives documented online -- from birth. Children are growing up online now and need security.
We could all ignore the reality that children 12 and under want to be on Facebook too, but the smarter and safer approach would be to acknowledge it and embrace it by creating a service optimized for them.
Concern for children has been an issue since the popularization of Internet use in the mid-1990s. But while children of the digital revolution they are, natives of culture driven by the digital they are not.