This exactly! Instagram needs a new CEO and everything, they are completely out of touch. They think that because TikTok is short form video it is what draws people in, when in reality it is that almost too good algorithm. I also think you said it perfectly with Instagram is loosing its identity, the upload a photo of your day/life/events/moments with a little caption is what won people over in the beginning without the statuses and the extra stuff of other social media had. If Instagram just further refined the algorithm to bring more photos that people would possibly like then they would probably be sitting better even if they continued adding short video content.
Even with YouTube trying the short form video at least it is something separate. it isn't quite in your face where Instagram is pretty much forcing their new path onto you. I like the video that the CEO posted I believe yesterday, when he mentioned that they are not getting rid of photos because that is how it began, but plenty have proven that just uploading photos basically does nothing since the all mighty algorithm doesn't like it.