Instagram's new rights

Yesterday, Instagram updated is Terms of Use policy and users are abandoning the service in droves.

Rights

1. Instagram does not claim ownership of any Content that you post on or through the Service. Instead, you hereby grant to Instagram a non-exclusive, fully paid and royalty-free, transferable, sub-licensable, worldwide license to use the Content that you post on or through the Service, except that you can control who can view certain of your Content and activities on the Service as described in the Service's Privacy Policy, available here: http://instagram.com/legal/privacy/.
2. Some or all of the Service may be supported by advertising revenue. To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you. If you are under the age of eighteen (18), or under any other applicable age of majority, you represent that at least one of your parents or legal guardians has also agreed to this provision (and the use of your name, likeness, username, and/or photos (along with any associated metadata)) on your behalf.

Hmmm.. so I travel to [insert undefined geographic point], I take the pictures, I apply the filter of my choice, I upload them...using the phone data plan that I pay for...but Instagram can use the pictures for advertising revenue. The last time I checked, taking someone's creative work without their permission is copyright infringement. 

Note: the key words here are "without their permission." If you choose to use Instagram's services, you agree to their terms...which includes providing your permission for the company to do what they please with the pictures you took. Is that wrong? 

No. 

As consumers, we all have a choice in what stores to shop, what services to use and what terms we find amenable. If we don't like it, generally, we have a choice of other providers. Instagram has been hosting these millions of images with no cost to any of its user base. Someone's got to pay the bills for the storage space, electricity and internet connections. How else does any business maintain viability? 

I usually hate stating the obvious, but honestly:

That said, here are your choices:

1. Keep on keeping on, i.e., suck it up and realize that privacy is dead.
2. Keep on keeping on, but maybe reduce the number of self-portraits you post.
3. Download your images and delete your account.
4. Move to another social photo site like Flickr or Picasa.

What do you think about Instagram's move?

Update: In response to the backlash over yesterday's announcement of upcoming changes to Instagram's Terms of Service, co-founder Kevin Systrom wrote "I’m writing this today to let you know we’re listening and to commit to you that we will be doing more to answer your questions, fix any mistakes, and eliminate the confusion. As we review your feedback and stories in the press, we’re going to modify specific parts of the terms to make it more clear what will happen with your photos." Looks like they're listening!