Earlier quoted context omitted.
I can imagine a better response, but not one that would take significantly longer for lawyers to vet. An ideal response would actually show examples (i.e. "This is an example of your photo being used in conjunction with an advertisement. This is an example of how your photo will never be used"), because as it is, the language is just couched enough that Instagram users, once burned, will be even more suspicious and c…
The terms are deliberately foggy in a way to protect Instagram. They used a good lawyer. The product manager failed here, not the lawyers.
If a lawyer's advice pisses off your users, that isn't a good lawyer. Sure a lawyer can claim that being "conservative" on behalf of their "client's interests" is the best way to act.
That's no longer credible though. The client (Instagram's) interests can be more closely linked now to their user's interests, than was the case before the Internet when a company could write whatever shit they like in legal agreements, and nobody would complain.