turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
While not the solution, I went to update my status on the app (I.e. Go to profile>write on wall) and I added my location which it found for me (the same style as when you check in) and people can see it so I'm guessing if I added a photo they'd have seen that too. You can also tag people from there and to some extent control privacy. So even if the status is blank or "." People should see it as effectively as checking in or uploading a photo - just a workaround while we have this problem hopefully 
Don't think so cause my default has always been friends except restricted and prior to February it worked. Know what you mean about the drop down box though, why aren't all your options there and if you post to friends does that include restricted? You've seen my workaround on the other thread? Posting location and photos using the status update? Unfortunately it doesn't always post to other people's news feeds for me, especially when we are out and about and reception may be poor. I hoped using beta version of fb would help but it hasn't and never get repiles from facebook help 
