9 Sep 2011 [1] seems to be the date at which they introduced that. I have since set that setting as you recommend, but I was definitely on Facebook before that. I guess the unsettling feeling (combined with this and all the incidents where changing an arcane library of settings is quite often bound to leave an open passage) has just stayed around since then.
>> "EDIT: Just made a double-check now, guess what? An open passage:
Note: You can still be tagged, and tags may appear elsewhere on Facebook. I can't review the tags if they are found on someone else's timeline."
I think this changed when they upgraded to timelines. You can approve tags before they appear on your timeline but you will still appear as tagged on the photo which will appear on the person who tagged you's timeline. So you are 'protected' from your friends seeing it but mutual friends and the taggers friends will see it.
This is one of a several privacy controls Facebook diluted. I used to be able to say exactly when groups of people could/couldn't post on my wall. This was really useful. Then they changed it to allow me two options - friends (i.e. everyone) or only me. Had to hack together a weaker solution through multiple privacy settings.
[1] http://www.huffingtonpost.com/2011/09/09/the-new-facebook-pr...
EDIT: Just made a double-check now, guess what? An open passage:
Note: You can still be tagged, and tags may appear elsewhere on Facebook. I can't review the tags if they are found on someone else's timeline.