We seem to agree together that it would be nice, but I don't think I made the underlying problem clear enough.
If they aren't logged into Facebook, nothing will show in the Friends area. The possibility of 'nothing' showing is a problem. So, we at some point in the past, added the check that the user is logged into Facebook on your site (which is something we can check for). We can't simply check to see if the user is logged into Facebook in general, if they haven't already approved your app.
So, we wanted to prevent the 'nothingness' from showing, but I'll agree, we went a bit over-zealous on that. My guess is that for v5.0, we'll remove the logged in check and always display the intro text. That way, you can say "See your FB friends on this site", and it may just be an empty area underneath. Suggestions welcome!
Thanks,
Alex