Facebook should also offer complete opt out from any tracking. Their model where they offer their service for "free", but harvest tonnes of personal data and then use them for targeted advertising, should be regulated.
If your family is on Facebook and you want to maintain contact with them, it is next to impossible to move everyone on a platform that respects privacy.
I think an option where you pay monthly and in exchange your personal data is not being used should be mandated by law.
I agree with much of what you say here and I think it would be an improvement. Personally, I still wouldn't use a tracking-less Facebook because:
1. I don't trust Facebook to not track me. When I left Facebook for good in 2014 it was because, for the second time after setting all my settings as private as I could (show photos only to friends, etc.), Facebook somehow reverted everything to "public".
2. Their algorithm is still aimed at generating controversy rather than truth, and that's enough for me to not use it.