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There has to be a way to find business model that involves showing respect for your users and the content they're creating, while still making money on ads, offers, etc.

I agree with the first part but not the second. What if the best way to show respect for your users is not to pester them with ads and offers, but to let them pay you directly for the value you are giving them?

I think that's my biggest hangup with this. There was never a "Well, we're thinking about doing this with your photos, but we were wondering if you valued the service enough to pay for it instead?"

There would have still been outrage, but people pay to get rid of ads on services all the time.. particularly if they want to continue a streamlined experience. If not, they can tolerate the ads. But using my photos as ads? If I opt-in, sure. But I don't want that by default. I'd rather see something irrelevant than have my likeness potentially supporting a business I don't want to.

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