So if I repurpose a photo I found on Instagram and it becomes the next Obama "Hope" poster I have to pay the photographer and Instagram? That would be lolled out of court.

Same thing with selling people's personal pics as stock photos, it doesn't matter what the user agreement says, that ain't gonna fly in front of a judge.

It would be like putting a sticker on the back of a picture frame that says whatever you put in here now belongs to Frames incorporated, NAL but it seems to me however legally binding it claims to be it wouldn't pass the smell test in court.