Crap, and I was just starting to like instagram. Depends on the market. If Facebook is trying to undercut microstock for bloggers/online news, then cell phone photos will be perfectly fine. There's still a decent amount of money is selling subscriptions that way; especially when it only costs you storage space to produce those images. Their labor cost is lower than a microstock place that pays photographers.
As a Istock contributor, IMO, Most crap cell phone photos won't print,look, or sell as well as good stock photos.
That said, I think a lot of people will abandon them after their last few changes. Taking away Twitter usability and then this is a good way to piss people off and make them go elsewhere
Istock has editorial licensed photos that are free for use on blogger non-commercial sites already in place. The Small file size sales are pretty decent and already are cheap for bloggers.
Then again, We won't really know until next year.