I'm sure people would be very level headed if they typed Facebook.com and were shown a GoDaddy scaffold page saying the domain has expired. 

This is not an over-reaction. This is a criticism,  hopefully constructive, of whoever is behind that slip-up, to be a bit more vigilant in doing their job, or they might be faced with a much worse consequence, albeit, as bittertruth nimbly puts it, sqatting.