The main issue is that basically it removes the concept of private photos. The new TOS allows Instagram to use your photos any way they want and removes any responsibility of keeping private pictures private.
Those pictures of you doing a keg stand at a Toga party which you shared only with your closest friends? Well now they are in a nationwide PSA about binge drinking.
Those pictures of you with your ex girlfriend on a beach vacation? Those are now in Carnival ad about whisking your loved ones on a cruise. Your wife is pissed and even deleting the photo off Instagram doesn't do anything about it.
If you are ok with all your photos becoming public, then sure this isn't a big deal. I think many people aren't.
Maybe I'm just old and cynical, but after seeing how most online services work, I just refuse to upload/share any photograph that I wouldn't be happy seeing splashed on the front page of the newspaper.
I apply the same test to pretty much everything I do online these days, and as a result, I maintain a dignified silence through most social media channels.
I whitewalled my Facebook a long time ago, don't 'like' any pages, and provide minimal personal information only to friends.
I don't use Twitter because I figure, even if I had an account purely to follow people, the individuals/organizations I follow could come back to haunt me. The same applies to YouTube, Pinterest, Tumblr, Foursquare, etc.
There's little difference to me between public on the internet and public on Instagram. They both ignore my photo's original privacy controls (to share with a specific set of users).
Those pictures of you doing a keg stand at a Toga party which you shared only with your closest friends? Well now they are in a nationwide PSA about binge drinking.
Those pictures of you with your ex girlfriend on a beach vacation? Those are now in Carnival ad about whisking your loved ones on a cruise. Your wife is pissed and even deleting the photo off Instagram doesn't do anything about it.
If you are ok with all your photos becoming public, then sure this isn't a big deal. I think many people aren't.