The app icon doesn't really look Facebook-like and the second screenshot look like a photoshop disaster. If I had never heard of the app, I wouldn't think it's an official Facebook product.
Agreed. When I first saw it in the app store all I could read was "Paper - stories from…"[1]. You don't even see the word Facebook until you click through.
[1] http://pic.twitter.com/MoYtlFfxFv