They're not pivoting - they are simply iterating.
"Photos might not even be a part of Color in the future, he said".
Sounds like a pivot to me.
Color is a damn good proposition and ironically a company that shouldn't pivot and the founder should be stubborn and force his idea down peoples throats. I really really like their end goal idea, and feel like they could get there with a lot of very clever execution.
They just need to find a "disease vector" (photosharing? music sharing? sexting?) to get people to use their location technology and make themselves available for tracking and advertising.