Facebook Chat turned off can you people see your activity

Facebook recently changed how this works (again). These instructions are for February 2011.

From your News Feed with "Most Recent" selected, click on Most Recent and then Edit Options. In the dialog box, select Show posts from: All your friends and pages and press the Save button. It will then show posts from all of your friends and pages, except those listed in the "Hide posts from" section.

First thing,

which automatically has everyone subscribed to everyone so anything anyone does whom you're subscribed to (by default all your friends)

This is false

There are two subscriptions.

1. Public Subscriptions
2. Friend Subscriptions

Public subscriptions are new. Friends subscriptions were always around in the form of "Hide Stories from this person". (I have confirmed this for some of my subscriptions show as unsubscribed)

So your friends were "subscribed" to you long before the subscriptions feature was officially pushed. If they didn't like your updates all they had to do was

And this auto-magically lets them unsubscribe from your updates.

For the ticker

If you hide someone from your News Feed entirely by unsubscribing from them, they won’t show up in ticker.

http://facebook.com/help/?faq=266468286709084

For limiting what shows on other users' tickers you can change your privacy settings.

Image sources: http://www.askdavetaylor.com/unhide_a_hidden_facebook_friend_in_your_newsfeed.html