If you're using the standard Joomla login and registration pages and want to add the social login buttons, you'll want to enable the "Integrate into Joomla Login" setting in the JFBConnect -> Configuration area.
If that setting is already enabled then something funky is happening.. either a different login/register view or your template (or something else) is preventing our alterations. The toolbar edit should not be the problem.
Also, something that is proving to be a lot more difficult than I had hoped, was to create a Menu Item as the Login with Facebook button. I tried it in a few places and because of the Facebook button taking up so much extra space, it completely distorts my menu bar.
We don't have a way to create a menu item to login to the social networks now. I just added it to our to-do list though, as it sounds like a good idea.
With that said, it sounds like you already made some progress on doing this. Can you let me know what you've done, and we can help you tweak it a little bit. In general, to create a login button, you just need to have a link that calls the javascript: jfbc.login.provider('facebook'); Obviously, that's easier said that done sometimes, but telling the goal may help.
Thanks,
Alex