Social Media & Education - how close is too close?

I have just watched a news report on TVOne news about a Kura Kaupapa Principal up North.  She teaches older students and the Teachers Council have just cancelled her registration for inappropriate behaviour - having facebook conversations with students who chatted with her about their daily lives, including sexual habits.  The teacher was deemed to have overstepped the mark by asking inappropriate questions of a student who admitted to having a one night stand without protection.  The teacher in question said she took on the role of 'aunty' or 'mother' to her students where needed.  The Teachers Council stated that it was not her place to take on such roles with students and that this is seen as 'unprofessional'.

I know and think about how we as professionals, carry out our job within boundaries, and often consider research that has revealed that 'knowing the child' is of the utmost importance. 
This story raised questions for me around the cultural responsiveness of the teachers council and the community response to the decision.  The small Northland community effected by this was divided over the decision - the complainant being interviewed was concerned that the teacher involved was leading the chats, often initiating them late at night and asking leading questions.   Another parent stated that they were grateful that students felt they could talk to someone (a trusted adult) about issues they obviously didn't feel comfortable discussing with their own whanau. 
As Teachers, we have to be constantly aware of our actions - always reflecting on what we think, why we think what we do and what others may think and why.  I try to play the 'devils advocate' to open my thought processes, considering other sides and trying to think outside the box.  Elearning opens up a whole new world and relationships with students that are extended outside of the classroom through social networking. 
Personally, I am not 'friends' with any students or families within the school I currently teach, I have made a conscious decision not to have links to students (both past and present) in the school I am in.  I am friends with a very small number students and families of students in schools I have previously taught.    I have taught in a variety of schools, both in NZ and overseas, and I find social media a great platform to keep up with old students with whom I formed friendships with and their parents - I have connected with students and their families in the UK, USA, the Pacific Islands and Australia.
I am very conscious of what I post online and am aware that students can access my page through links outside of my control.   We have to make professional judgements around how close we are to our students, often we have profound affects on them, just as they do on us.  I believe it is not unprofessional to form friendships with students and their families.  I believe cultural responsiveness is required and indeed drives relationships.  I believe we have to think hard about the use of social media in developing those relationships with our students.
Conversations with staff are important, indeed crucial to ensure a shared understanding and expectations are in place around the use of social media and the pitfalls of this in relation to the jobs we have.