It's all Profile lists (aka Bookmarks).

Just not smart or good UX to only have public lists.

Setting up 1 public and 1 private one by default seems like a good idea for a Chat / Community app.

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oh yeah, I totally agree.

Mine was more around the naming. "Bookmark" seems like a better term, maybe?

"Contact " reminds me of phone number lists.

Btw, having good private bookmarks or contacts or whatever is a good idea for the following reason:

If there is no such feature, for having fast lookup to a profile one might start following, which is a problem because in WoT a follow is assumed to mean "I like your content"