The problem is you don't know in 2012 that these are the two options. Obviously no one with the power of foresight is going to choose option B, so I don't get what point you think you're making.
* The second comment suggests that this vindication is debatable based on Instagram’s valuation being higher than Snapchat’s
* I agree with the first comment and disagree with the second comment, so the point I am trying to make is that it the decision to turn down the acquisition was indeed vindicated.