Snap calls itself the friends and family network for a reason. Instagram is a mix of celebrities, influencers, businesses, friends and family.

Why? Their monetization strategy so far has been brand advertisement interspersed as vertical video ads between Stories. This doesn't require any particular kind of content, only that they can hold your attention for 10 seconds or so while they show you an advertisement.

And their monitization strategy so far has led to larger losses than expected, less revenue per user, and slower user growth.

It might make for a better user experience but that's not good for a free service

Good point but I think the solution is not to gut their good user experience, but to figure out better monetization strategies. Because better user experience is about the only thing keeping them in the Game.

Well yes, they would likely keep their current one while expanding into new areas.

I'd argue though the only thing keeping them in the game is network effects and fighting that fight vs IG is... going to be challenging.

This thread is very interesting for me. I've never used Snapchat before, and I deleted my Facebook years ago. However I do use Instagram daily. The caveat there is that I've never viewed or have taken a story. Video just feels very odd and antithetical to the reason I use the platform (which is to post outdoor photos). I guess if I could upload high quality video to a story I'd be more interested in it.

If you're worried about quality, you're missing the point. Stories as a concept work because they are informal glimpses into people.