Some of us expected something like this after Instagram was aquired by Facebook which has a very bad reputation when it comes to users privacy. In simple terms, with these changes Instgram now has the right to sell users’ photos without any payment or even get notified about the use.
Lets checkout some of the portions of changed terms of Instagram: (italics and bold highlights added by us)
Some or all of the Service may be supported by advertising revenue. To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you.
If you read the above terms (specially the portions hughlighted), it simply gives Instagram full right to sell all your Photos and any personal data associated with it without getting permission from you or paying you anything or even notifying you.
Now have a look at the terms below (again italics and bold highlights added by us):
If you are under the age of eighteen (18), or under any other applicable age of majority, you represent that at least one of your parents or legal guardians has also agreed to this provision (and the use of your name, likeness, username, and/or photos (along with any associated metadata)) on your behalf.
The above terms may be violating privacy laws of many countries as Instagram is claiming to have rights to sell Photos and any personal data associated with it of teens (less than 18 years) without getting permission from their parents.
The above terms protect Instagram from any claims, lawsuits etc., for any breach of user data for whatever reason.
Should you Delete your Instagram Account?
Apart from the portions highlighted above, there are more changes which gives a damn about user privacy just like Facebook. Unless you are comfortable with someone else selling your Photos and other personal data without taking permission from you or paying you or even notifying you, the answer is yes. You must delete your Instagram account.
And if you are one of those users who give a damn about privacy on the web and has no objection the changed terms of Instagram then you can keep using Instagram.