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Quentin, I worried too about the "few friends = low status" thing when I started on Facebook. But speaking now as an old hand I'm fairly confident that the only people who make such judgments or worry about them are newbies!
And yes, you CAN hide who your friends are.on Facebook. There are many other privacy settings as well. It would be too complicated to go into it here but they have a Help Center which will tell you how. You can find the Help link on the menu that will open up when you click on "Account" (at the top right-hand of any page) or, in small letters, at the very bottom of any page on the far right.
It's OK to ask someone you just met to friend you.
Not only do some people friend every last acquaintance, it's also common to friend people for the purpose of game play (there are numerous game applications you can access through Facebook, and for one reason or another it's often advantageous to play with people who are friends, so people will friend one another for the sake of the game). Then there are people who friend friends of friends because of shared interests or whatever. Bottom line: If somebody has 1,000 friends, nobody assumes that he is best buds with all those folks in real life.
Don't worry too much about the etiquette--if you spend some time with it you'll pick it up. Most people will be happy to help you out if they can (though a lot of people don't know about all the privacy settings. They're really not hard to set but you have to look for the info.)