Yes it does. Show me another non-profit Open Source (mostly) IM service that invests this heavily in seamless encryption and I'll change my opinion. The weakness that they found could have easily been brushed off as non-exploitable, yet they didn't, instead encouraging more security experts to become involved by paying out immediately.
The question whether their Crypto is bad is still out IMO - these recent findings still don't seem to be that big of a deal to me - as with all other IM services I have to trust the service provider for their integrity - yet here I have an alternative provided by a non-profit organization with some scientific credentials that offer an open API - as opposed to Skype, WhatsApp, Facebook et al. We currently use Skype for business purposes, but Microsoft's investment away from P2P makes me think that for privacy reasons alone, it's a bad idea. I'm always open for suggestions, but so far I haven't found anything really viable (well designed clients, well integrated encryption, open APIs). That's why I'm excited for Telegram.
To name just one alternative, the OTR developers have done far more to make seamless, open source encryption of IMs possible than Telegram - regardless of how much cash Telegram are willing to throw around. Even if the secret chat feature worked perfectly as intended, it'd still be both less usable and less secure than OTR. It requires users to manually validate key hashes in order to stay secure, a requirement the OTR developers dealt with years ago because they found users simply didn't do it. It also lacks forward secrecy which is especially important for mobile devices that can be stolen or lost.
OTR sounds great, I just wish I'd find an easy-to-setup-and-use, good looking Windows client, such that I could convince non technical decision makers to adopt it. Adium does that for me on OSX, but I don't think Pidgin is a good match, except if something big has changed since 2-3 years ago when I last gave it a try.
