Om Malik says,
Facebook was scared shitless and knew that for first time in its life it arguably had a competitor that could not only eat its lunch, but also destroy its future prospects. Why? Because Facebook is essentially about photos, and Instagram had found and attacked Facebook’s achilles heel — mobile photo sharing.Photos are important on Facebook, but it's not "essentially about photos". Most Facebook users go there to waste time on Zynga games, post boring status updates, make snarky comments to friends and laugh at Lolz pictures. And it's not exactly difficult to post photos to Facebook from your phone, unless you think tapping Send Photo is difficult.
We are at the January 2000 point.