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Facebook Confusion

Any updates that are made will be done through the app in the market and you would need to install them.
Just like Maps comes pre-loaded on the phone but still gets updates in the market...same thing with FB.
But unlike Maps, where it showed as installed in the market listing, Facebook shows as "FREE" which implies it isn't installed.
 
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Check the version that you have and the version in the market. I don't know why it shows as not installed right off the bat. I didn't even notice it was the market at all (since it was loaded already) when I got my phone, then stumbled across a post that said an update available. I updated and now it shows installed. There have been updates and as far as I know that is the only way to get them (discounting root etc.).
 
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I have the DROID and I was confused by this for some time also, so I just left it alone (the version that came with my phone). The other day I installed the newer version from the market and it replaced my previous copy and had some improvements. So if you do have the facebook pre-installed app, I would say go ahead and update it from the market for the newest features (although you can always use the browser and go to touch.facebook.com or just the full site).
 
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