A problem that can be rectified by Facebook, literally 11 years after some of the things you talk about, tweaking news feed weights towards personal posts from friends and other changes to allow users to spend time on the site more efficiently is not a serious problem.
And the analysis of photos is spectacular nonsense. First, albums existed very very early in the time you were talking about. Second, the photo uploading features you mention (including hi-res photos) were added at most a billion daily actives ago. Third, building a platform that allowed "a dozen apps" to get created was pretty clearly higher leverage. And finally and most damningly, Instagram doesn't have high-resolution photos or albums and certainly didn't at the time of acquisition: how are those the features that FB had to buy to win users back?
Disclosure: I worked there for 8.5 years, including writing Facebook Chat.