This reminds me of Steve Jobs dumping Flash from iOS. It is a manifestation of power, or a sense of power, to dump Instagram simply because it was ported to Android platform as well. Isn’t this a bit too touchy?
It could be. This is not an official drop from Apple’s strategic partners list, but Phil Shiller is senior enough to have an impact. This may further strengthen the perception of Apple’s do-as-I-say stance which could be very costly to undo in a few years time when more flexible partnerships are needed.