Technology isn't static, there will be a time when the quality from a phone camera is "good enough" that the whole first part of the diatribe becomes moot, arguably for most people it's already at that stage.

My Olympus digital camera from 2001 was a 4 megapixel item, flawed though megapixels are as a measure of quality, at those levels it did still matter, now my phone camera one-ups it in that department.

The problem is more, how and where do you store your photos so that you still have them, 40 years from now, which he does touch on to some extent. Somehow, I doubt Instagram will be the "system of record" for this, and for now, it's providing a service that some people find useful.