Seeing that Google Plus now offers a viable alternate for those tired of Facebook's interface, the social networking are stepping up their game and introducing new features and functionality to their Friend Lists. New changes make it easier to manage your connections and improve privacy settings at the same time.
The three major changes are "Smart Lists", "Close Friends and Acquaintances Lists" and "Better Suggestions". Smart Lists help you organize your contacts with respect to Work, Family, City and School. If you and your friends have all your details filled out fully, Facebook will place them in these four categories automatically.
Close Friends and Acquaintances Lists will control how often contacts show up on your news feeds. This list is populated entirely by the user and special privacy settings can also be applied depending on what kind of access you desire to share with the respective parties.
Finally, Better Lists hopefully makes better suggestions on who you should befriend on Facebook.
More details can be found on the Facebook Blog on what these changes are and how they are being implemented.