tdogg21i think they backed off of that. i believe that is still a Facebook policy, but there was so much backlash against instagram, i'm pretty sure they took that out of their policy.
Yeah, you are right. It looks like they reverted on 1/19/2013 (a week and a half ago) after having lost 42% of their daily traffic. I am still leery given that it is an evolving situation. They will try to monetize the service again since ad revenue doesn't appear to be cutting it.