That's what the change in terms says.
If you're using Instagram and in any way care about your creative work, or what your word means, you're an idiot to keep using it.
Now, there are a lot of idiots out there.
Me, I always prefer to make tools for the smartest people.
Schnooks are welcome to use my competitors' products. :-)
The problem with Flickr is that it didn't / hasn't played real easy with the place where the people (like my young ones and other friends are) like Facebook, Twitter, Instagram. Once the big social networks AND mobile hit, Flickr should have really played itself like the Source for pictures and integrate well with everyone else (I know they've kind of done allright with FB/Twit recently). I'd love to make it my go to picture place again (and I wish they would update the app to do an automated upload like G+ has and FB just added). Let's give them the juice to make that happen!
I've been using Instagram for a while, but always sending each photo to Flickr, and I never stopped calling my photo stream my Flickrcubes (related to my Sugarcubes linkblog, related to my nickname mistersugar). So, with the new Flickr app, it'll be easy to say goodbye to Instagram.
I love how many people are asking for alternatives to Instagram when Flickr is sitting there like a boss :)