1. I think that the whole "low budget and production values in advertising" thing is mostly a trend. In the past few years, Youtube has become huge. But as Youtube evolves - including adding HD content - the "amateur" look will be just that - amateur. If a big company makes a worse looking video than some 12 year old with a webcam, how will that make the company look? So in short, I think that user-generated content will definitely increase over time as HD recording devices get cheaper and more accessible.
2. I find myself using Facebook the most, becuase it's the cleanest design-wise and is very easy to understand. There's always something new going on and there's millions of pictures to look at. I find that it's better than myspace because it's not as cluttered. These days, myspace has pretty much transformed into a giant cluster of nonsense from trying to be like all the other social networking sites. This, in my opinion, led to its downfall. I think Facebook will continue to be used, but there is only so much you can do before it becomes a "big brother" sort of entity.
3. Transparency is so important in the online and social network world because if someone is being sponsored to say something, it may not be what the person themself would say. This leads to the public having a different opinion on the person than the person would want them to have, which in a way defeats the whole reasoning behind social networking. Social networking is supposed to be a way to connect directly to your fans / friends / etc with no filter whatsoever. If someone is getting paid to say something on facebook, the transparency between the person and their followers is destroyed.
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