OK I just found out also that the My Gallery link and the new Gallery I have are not the same and had me also confused. But if you go to the New Gallery page and then above the 3 thumbnail you click on the browse my gallery link your see things again in another way.
It has me very confused.

After clicking around I see in the "Favorite Artists" and "Favorite Images by Other Artists" that we have and others can see if we click Edit that we can "make private" so others don't know but I got nothing to hide so it's ok.
But on the new Friendslist you don't have the "make private" option.
Should that also be a option on the friendlist?