No, it's not. It's the dirty little secret of "free" cloud services: you're using somebody else's resources to store your own (intellectual) property, relying on vague TOS clauses that can change from one minute to the next. This is exactly why this brouhaha took off: all of a sudden people "felt" those clauses were now abusive; they realised they were relying purely on Instagram's benevolence, and they "felt" that benevolence was now gone.

This is the case for any cloud service, including Dropbox, iCloud etc; there are probably a few exceptions (I'd expect Salesforce to have tighter TOS), but the overwhelming majority of consumer-oriented cloud services are in the same boat. Last I checked, Dropbox reserved the right to go through your files -- for troubleshooting purposes only, no doubt, but again we have to take their word for it. How many times did you actually read those TOS? For what I know, they might now state that Dropbox can sell your data to China.

The hard truth is that the garage is not yours and it will never be yours; in the best scenario, you are renting it with a tight contract , but in most cases you just had a chat with the owner once and he sorta promised not to resell your boxes full of comic books. Sooner or later you'll find a less honourable owner, and shit will fly.