Fotowoosh is on Facebook Beta, why?

This morning I received an email saying that Fotowoosh has entered its Beta phase, marking the first time it is openly available to the public. Previously, it was only available through video demos. But why is it launching on Facebook Beta? Was it acquired by Facebook? Or did Fotowoosh willingly align itself with Facebook as part of a strategic development plan? Regardless, the analysis remains the same: most small Web 2.0 sites seem destined to end up collaborating with larger companies.