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Wow, I'm glad this guy is not genuinely associated with Instagram's product!
He's not really proposing Instagram to go in this direction at all. He's just using their UI as an example of how one could do commerce for mobile devices.

But using Instagram as an example is a bit too far fetched. Instagram didn't grow because of their browsing UI, but because of their publishing UI and its end result.

We just built this idea to help merchants sell via Instagram. www.gramgoods.com
Social and eCommerce will never mix. This idea is wanting. Lockerz.com is trying to do this but its seems the idea is failing.
Wouldn't their be copyright or any other infringement concerns in doing this?
This looks a lot like what the folks at Shopcaster (http://shopcaster.com/) are doing.

(Disclosure: they are partially funded by the same startup fund/accelerator that the startup for which I work is.)