Doesn't Yahoo power the weather app, making that point meaningless?<p>Also, how does this make these companies "losers"? Competition is good for business, and the businesses that are in place and have current user bases will win out if they have better (or even on-par) products.
How are these companies losers? They still have their product and their current user base; if they couldn't stand a little competition, then they weren't meant to last anyway.
I don't know any teenager that uses Photo Stream. They are using Instagram so they can share among all their friends and family who have varying devices. They are using Instagram so they can compare who has the most likes, who takes the best photos, and who ate the best food. Photo Stream isn't even meant to replace social networking sites like Instagram.
Apple is philosophically stupid when it comes to sharing. Apple seems to be stuck in a worldview where people want to share with their own devices. That is nice, and they may kill dropbox or 1password, but that philosophy does nothing to compete with Instagram or Google. Google Docs is miles away from being great, but at least they are working on the right problem.