I've deduce 3 things through trial and error and guess work!
I have noticed that when you allow public profiles in the admin section nothing happens. How does a user decide if they want their profile public or private? Or does the allow public profiles make all profiles public by default? I know the small text below this option says that users can choose to show their profile to the public or loggedin users. However I don't see any option where the user can decide this.