There are concrete studies (search Acquisti) that shown Facebook users have a big disconnect between what they want as privacy and what they do. And that disconnect has , in more than one top journal papers, been attributed to a lack of total grasp of the privacy settings and its implications by the common public. So I think one should refrain from making bold claims like "users are generally concerned about UX over security" (I believe you meant privacy and not security).
I totally agree with the philosophy behind your claim that users see privacy as part of a utility function where sometimes the value of the experience trumps privacy controls and it also depends on the value one attaches to the information he/she is sharing. So from that perspective, especially given the publicly accepted norm that everything on instagram is public (like in Twitter), this "privacy calculus" will probably work out in favor of Instagram's decision here. And yes, it is not a horrible thing for them to be doing either.
But it does break the trust for those who are accustomed to the connotations of certain UI features (like "Done" button and progress bar).
Instagram will get away with this, but if somebody with a less trust level was engaging in such pre-"Done" uploading activity, there would be pushback. What I fear is that the co-founder by sharing this with the developers community will encourage this behavior in other startups/apps and this will then become an industry best practice even for the shady apps (just like it did for the address book).
I totally agree with the philosophy behind your claim that users see privacy as part of a utility function where sometimes the value of the experience trumps privacy controls and it also depends on the value one attaches to the information he/she is sharing. So from that perspective, especially given the publicly accepted norm that everything on instagram is public (like in Twitter), this "privacy calculus" will probably work out in favor of Instagram's decision here. And yes, it is not a horrible thing for them to be doing either.
But it does break the trust for those who are accustomed to the connotations of certain UI features (like "Done" button and progress bar).
Instagram will get away with this, but if somebody with a less trust level was engaging in such pre-"Done" uploading activity, there would be pushback. What I fear is that the co-founder by sharing this with the developers community will encourage this behavior in other startups/apps and this will then become an industry best practice even for the shady apps (just like it did for the address book).