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To me, Instagram is a public platform at its core, where people publish things for the whole world to see. Private messages are just a secondary feature. It is like having a conversation in a restaurant, where the guy at the next table can listen to everything, but usually doesn't. Good enough for planning a surprise party, not for truly sensitive information. Kind of like private messages in Reddit, Discord, etc... a convenient feature, but don't expect real privacy.

Messenger has a higher expectation of privacy, Facebook is more at the "group of friends" level. While Instagram is a public restaurant, Facebook is more like a house party. WhatsApp has the highest expectation of privacy as it is designed for private, often one-to-one conversations first.

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Sure, but if you already have e2ee, it takes work to remove it... why invest the time to do that?
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It also takes work to keep it working and it may have a lot of bugs already, that are hard to fix because of it. A non-E2EE chat app is very easy to make.
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WhatsApp and Messenger are pure messaging apps. For Instagram, DMs are just a tiny part of the overall experience.
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