If a lawyer's advice pisses off your users, that isn't a good lawyer. Sure a lawyer can claim that being "conservative" on behalf of their "client's interests" is the best way to act.

That's no longer credible though. The client (Instagram's) interests can be more closely linked now to their user's interests, than was the case before the Internet when a company could write whatever shit they like in legal agreements, and nobody would complain.

Sorry, but under universally-accepted legal ethics standards going back centuries, that's not at all how it works.

Lawyers advise, as you say, but ultimately, the client's business people make the call. Sometimes a lawyer will tell a client, "sure, legally you can do this, but you need to be prepared for some significant blow-back," and then the business people decide they'll take that risk. That decision is entirely within the province of the business people; not only can the lawyer do nothing about it, she must remain silent to the outside world about it except in extremely-narrow circumstances.

Few would have it otherwise. Even when we're talking about a public company, few shareholders, let alone managers, would want the company's lawyers --- who typically have never had much first-hand business experience, let alone P&L responsibility --- to be able to overrule a decision by the business people about business issues.