Does Auto-Login to Joomla Account work in 2.5+

Yes, that is on purpose. There were some security issues that were related to the implementation we used before where, under specific circumstances and with user's sharing a computer, it was much easier to unintentionally 'merge' a different user's Facebook account with someone else's Joomla user.

We're investigating a similar implementation (auto login) as an option for the next revision of JFBConnect. I can't guarantee it will make it in, but we'll definitely note that it's desired.

We're investigating it as a selectable option for the next major release of JFBConnect (where our primary effort is right now). We don't see anything preventing us from doing it, yet, but I won't guarantee it will be there.

We haven't received a huge response of people who missed it (there were more complaints when it was there). However, we liked the feature.. so that helps push it up in the priorities.