The consumers, no? They get inferior products. Who wins? Seems like its just people who want a piece of the pie, and do they deserve it? Doesn't seem like it.
Hell, the main benefit I see to instagram is that their geotagging improved immensely.
Network effects. Together everyone hates it; individually, there is nowhere else for people to go without losing the majority of your social network. Facebook has people; its software is utterly irrelevant to why people use it.