Yahoo was never sure what to do with Flickr after they bought it. And when they realized they’d missed the smartphone revolution, they tried to make it into something it wasn’t suited for (an Instagram equivalent) and couldn’t sustain (cloud storage for ALL your photos!)
I remember when they panicked over Instagram and the best they could come up with was adding filters, as if that was the key feature that made it take off. (Filters were just a way of covering up the fact that phone cameras of the day were still pretty terrible.) And I remember when Facebook started asking you to auto-upload every single photo to their app in case you wanted to post it later, and suddenly everyone wanted you to auto-upload your photos. Facebook, Google+, and of course Flickr.
But Flickr has a different social structure than Instagram, and being cloud storage for every last picture takes a lot of resources. Maybe chasing Facebook and Instagram kept them alive for a while, but it put them in a bind down the road.
I don’t think Yahoo has ever understood what made Flickr resonate with the people who liked it back in the day, or those of us who stuck with it. They considered closing Flickr several times. And Verizon clearly didn’t want it, since they were happy to sell it to SmugMug.
It sucks that they’re deleting photos to push free accounts into the new limits, but SmugMug taking the site back to basics might make it viable long-term. Maybe now they can work on being a first-rate Flickr instead of a third-rate Instagram or fourth-rate Facebook Photos.