I agree. I'm not sure how this is at all like Instagram. Is it because there is a feed? Then why not the Twitter for pixel art?
In other news I think it is missing features to be a commercial product; I don't know too much about iOS but if maybe you can convert it to emoticons that can be used in chat, or being a being able to customize size instead of the forced 16*16 would be nice, or a public gallery and being able to edit other people animations.