Internet Versus Privacy

Recently I came across a CBS story about the internet versus privacy issue. The story argued that, today, our private lives are no longer private. This is obviously uncontroversial, but the reason our privacy is depleting is where the debate is centered. In the CBS story, it was stated, when we talk about privacy, we are talking about our right to control information we consider to be private. With the increase in technology, we are not losing control of our privacy, we are giving it away. Every time we use we use a credit card, Facebook, emails, or cell phones, we trade our privacy for convenience and entertainment. The CBS story also related the tale of a teacher who lost her job because she had a picture on Facebook of her holding a glass of alcohol. She was fired on the grounds of promoting alcohol. There are two arguments here. One could stand firm that this teacher gave away her privacy to this picture when she posted it on the internet. The other argument is that if one were to see this teacher drinking at a restaurant, would this be grounds to fire her? What is the difference? The teacher argued that she would never bring alcohol into the classroom and that her posting on Facebook was not meant to be seen by her students.  However, by posting it on the internet, her students, as well as anyone else with internet access, could have accessed it. What are your views on this issue?