I already nuked my account yesterday, je ne regrette rien. There are too many viable competitors (plus I'm already a paying flickr account holder) and facebookagram doesn't really have much of a differentiating advantage over them. I hope flickr gets a nice bump out of this and others take heed that they need to keep their legal department sober when they're coming up with these TOS changes.
The other thing that's disappointing about instagram is that they want to get into the creepy 'social' side of the advertising at all. I would've loved them for offering an affordable subscription that gave you power user features like what flickr offers, and promising to stay the hell away from manipulating my social relationships for profit.