Sure, it's a bad (or at least unwelcome) thing...one of a social network's primary currencies is the network effect that entices more and more people to make it an essential part of their online lives. Every millon users, even if they're all dead beats, is more leverage to convince big companies who will pay you to join into your ecosystem.
The network effect is nice, but money is nicer - especially if you were just bought for $1b by the epitome of the network effect. Instagram needs something to sell in order for companies to be willing to pay to join them, and what can they offer but the personal information of their users?
