Looks like they have changed (or broke) the default value for height from "300px" (I think that is what it was) and replaced it with the 120px which leaves no room for the stream. If you add faces it ups the default value and leaves room for the stream.
If you change the height of the box to say 600px (depends on what you want) then even with faces off it will show the stream.
For example if you goto: https://developers.facebook.com/docs/reference/plugins/like-box/
Then turn stream on and faces off (even on the default site of FB Dev) it will still hide the stream with no height specified. Then change the height to say 600px the stream will appear.
Feels like less of a bodge than the other method that Nathan mentioned (which I couldn't get to work anyway! :( LOL)
Hope this helps someone else. :)