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If you have lists of friends you want to chat with, but a list of friends you do not want to chat with, you can turn one list on for chat and the other off -- and it's really quite simple.
But, one criticism is that the wording is a bit tricky, unlike before which made it rather clear which option you were taking.
1. To determine whether you want to appear "mostly online" to, select the Make me unavailable to option. To appear "mostly offline", then select the Only make me available to option.
2. From here, you will be able to check boxes which relate directly to your lists of friends -- your colleagues, or your limited profile -- or even a dedicated 'chat blocked' list, for example -- to determine whether you appear online or offline to them.