Is Facebook's Widget Policy Too Restrictive?

Last week I began development of a widget for the Facebook Connect platform. The idea was a cross between MyBlogLog and Friend Connect. Why am I revealing my secret project? Well for the most part I can’t develop it anymore. In order for my “widget” to function on another person’s website it essentially needs to be an application and I need to hand over the majority of my code to whoever the site owner is.

Additionally, in order to protect my scripts from any security vulnerabilities I would need to implement a complex cross-site confirmation layer similar to to Facebook’s “cross-domain

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