Isnt the point that facebook wants the photo data. If people were to save all their photos to instagram rather than facebook, then migrating to another social networking service would be a lot easier (since the main reason stopping people migrating is likely the loads of photos they already have uploaded).
Only that you have one company with "X" people producing this machine.
If X + Y people were replaced by the machine, which is likely to be the case since it is pointless to automate something where there would be minimal gains. What do the Y people do instead?
Assuming this occurs across all industries, where are the jobs? Not every burger flipper has the intelligence to become an engineer/manager