Facebook Data Sharing. Am I missing something?

I posted this as a comment on an article entitled "Top Ten Reasons You Should Quit Facebook". The biggest question for me as to whether I should stay with Facebook, is down to me knowing who I'm sharing my data with. Do I have the choice that the terms seem to say I have? From "http://www.facebook.com/settings/?tab=privacy&section=applications&field=learn"

"When you visit a Facebook-enhanced application or website, it may access any information you have made visible to everyone (Edit Profile privacy) as well as your publicly available information."

I read this to mean that only data I've stated is either public or accessible to all is accessible to applications. Since that for every item in my privacy settings I have selected "Only friends", I would expect that applications cannot access any data of mine other than my public profile.

If this assumption is wrong, please let me know!