Allen Murabayashi, CEO of PhotoShelter, regarding Instagram's TOS:
The language is typical of many photo sharing sites (including PhotoShelter), so in that sense it’s unremarkable. The company needs the ability to redisplay images, and wants to be able to have, for example, an image appear in the app, within an Instagram Story, and on the website without having to regain consent each time it comes up with a new feature.
The post I pulled this quote from does a good job framing the issue with Instagram's TOS and the Mashable case.
I don't know why it is ever surprising to anyone that if you upload content of any type to a free platform that you likely relinquish some or all of your rights to it. If you don't like that, get a web site.