Telegram is very young project and it has bugs for sure. Some guy found potential issue in protocol and developers committed to fix it soon. There is no information that any messages were revealed due to this bug but Telegram should go away and developers should do something else.
Whatsapp is less secure then Telegram but I have not seed “Whatsapp RIP” messages. Not so hard to save videos in snapchat but no one propose to close the application. About a year ago YAML vulnerability was found but no one proposed dhh to stop development and focus on race driver career.
I think that we need more competition for TextSecure.
Terms of bug bounty are very hard to satisfy even with bad protocol but Durov seems decided to play safe with such amount of money. Guy that found problem in MTproto doesn’t win money according to conditions of the bug bounty because message is not decrypted.
Disclaimer: I don’t have any affiliation with telegram besides living in the same city as telegram developers.