So, it sounds like Systrom is essentially back-tracking and trying to convince you that the language was confusing, as opposed to saying "Ok. So, this is a bad idea." Then, in an attempt to "clear up confusion," Instagram's statement says it wants to "experiment with innovative advertising that feels appropriate on Instagram," and then provides you with a hypothetical business scenario. First of all, what the hell does "experiment with innovative advertising that feels appropriate on Instagram" even mean? Second, this isn't a law school exam. You can keep the hypos to yourself. Conclusion: Facebook is super afraid that we are all going to quit Instagram and that $1B they just paid for it would be a big loss.