Instagram listening or backtracking?

Before carrying on any further, take a quick read of Kevin Systrom's recent blog post about the Instagram "sell your photos without permission" fiasco:

http://blog.instagram.com/post/38252135408/thank-you-and-were-listening

What do you think. Genuine confusion or tail-between-the-legs backtrack? I'm struggling with this one but I'm swinging towards the backtrack. Facebook do this all the time. They announce a new policy that will actively affect user privacy then backtrack when said user complains. Seeing as Facebook now own Instagram I would not be surprised if this is a similar tactic.

I'll play it safe and look out for anymore updates.

Does make you think though, doesn't it.