Why Facebook is not dead (yet)
There's a whole lot else that people do on Facebook besides comment on one another's status messages--the biggest of which is the company's groundbreaking third-party app platform. The biggest social game on Facebook, Zynga's Farmville, attracts 75 million people per month. That's nearly a fifth of the social network playing a single game. Then there are the people who engage in other sorts of "games" on Facebook: the social capital that members feel they earn by getting tagged in a lot of photos and having a ton of wall posts from friends should not be sniffed at either, for example.
via news.cnet.com
The above quote is by Caroline McCarthy of CNET News. I agree with her that it's far too early to call Buzz a Facebook killer. Apps bring a lot to Facebook and based on the current UI design, I don't think Google Buzz is heading that way.
Who should be worried, on the other hand, are one-trick-ponies like Foursquare. Google Buzz already has geolocation and recent attempt by Google to buy Yelp indicates that partnering with local businesses is in Google's targets.