Since when did institutions have the right to govern productivity in such a Draconian manner?

• No chewing gum in kindergarten.
• No portable video games in grade school.
• No iPods in High School.
• etc...

There's nothing 'Draconian' about it - universities and institutions have a history of blocking or allowing sites and services as they see fit on their network. It's not Draconian if people can simply choose to go to a different school; I hear Mcgill doesn't block Facebook.

They could just issue some random edict

No, that's not the way things work. They want people to stop wasting their time on Facebook before they lose their jobs. It's also way, way more labor-intensive (and Orwellian) to start monitoring everybody individually to see who's doing what on their computers. I don't think Concordia wants to be Homeland Security, and they don't want a conspiarcy. They really just want to make sure that their efficiency doesn't take a nose dive, plain and simple.

Why use censorship when it's really an issue of appropriate behaviour?

I'd really love to hear your thoughts on how any use of Facebook during working hours can be considered "appropriate behavior"...

Besides, if people can't waste time on Facebook they will do other stuff, Msn chat, maybe go dust off the MySpace page.

"Besides, if people are not allowed to buy guns they will just kill each other with knives and cars."

There comes a point in 'boredom' where the activity used to procrastinate is so lame and unfulfilling (ie myspace, in your example) that it ceases to be worth the effort to procrastinate at all; then, we just roll up our sleeves and get back to work, as 'grievously boring' as that can be - but if it's so boring, why sign up for school in the first place?