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I'm open to new thoughts on this but this seems like Facebook is being used a scapegoat. What would be a viable solution to this problem?

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> any evidence this is something intrinsic to Instagram as a platform

That the kids are specifically calling out Instagram and not, say, flikr or Twitter, is a big hint. Believe what the kids are telling you.

I'm sure the kids were specifically asked if Instagram was causing any issues for them and I imagine the rest of the internet has a direct impact on their feelings not just Facebook

Enforcing the Facebook Code of Conduct would be a start. Have you read it?

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