It's not a great apology because it implies things were just unclear, and need to be clarified. And we were silly for being confusing by the tricky legal stuff.
For instance, they say "The language we proposed also raised question about whether your photos can be part of an advertisement." No, the language they proposed clearly said that was something they could do: "you agree that a business may pay us to display your photos in connection with paid content." (paraphrased) Or the bit about "you own your photos and that hasn't changed". True, but that's not what people were complaining about. They were complaining about how it says "you own your photos but you grant us the rights to do anything with them up to selling them." Instagram just saying "you own your photos" back is meaningless as a response and sounds like they think we are just stupid.
For instance, they say "The language we proposed also raised question about whether your photos can be part of an advertisement." No, the language they proposed clearly said that was something they could do: "you agree that a business may pay us to display your photos in connection with paid content." (paraphrased) Or the bit about "you own your photos and that hasn't changed". True, but that's not what people were complaining about. They were complaining about how it says "you own your photos but you grant us the rights to do anything with them up to selling them." Instagram just saying "you own your photos" back is meaningless as a response and sounds like they think we are just stupid.
(My source for the original complaints: http://www.huffingtonpost.com/2012/12/17/instagrams-terms-of...)