The death of Color, Path and Instagram?
Facebook's behemoth social graph will easily steamroll over any new effort in this space. Color/Path/Instagram will need some insane differentiation in order to win this battle.
Facebook is a collection of all your friends/family/people you kinda know and so fouth. We still need services that are specialized and cater to certain groups within your social circle and I can totally see Color/Path/Instagram/Whatever take and prosper from holding that position.
But then again Im not really a fan of Facebook and perhaps Im missing some core functionality that actually already exists within Facebook.
In that case, Facebook is very well positioned to execute faster and better in that space.
one of the big differences i can think of off the top of my head at 3am is that FB still isn't really about discovering new friends. You meet people in real life, then you friend them on Facebook. Not vice versa.
As far as I can tell, something that Color is expanding into is creating this "temporary" social network where you share photos with anybody within a certain location. It isn't as much about sharing photos with friends that you already have, as it is about discovering new people and the photos they're taking around you.
Based on widespread privacy concerns that Facebook has had to deal with, I'd say it's unlikely that this app involves social discovery. It's probably another friend, photo-sharing app, with the permissions of sharing mirroring what happens on the Facebook webapp.