Thats the entire point. Flickr is about photos. If Flickr was releasing new products and testing new things they might have landed on Flickstagram. But like OP

Thats the entire point. Flickr is about photos. If Flickr was releasing new products and testing new things they might have landed on Flickstagram. But like OP said they didn't do much at all, and so missed the boat. So yes you're right, they don't compete. But thats the problem. Hypothetical one, and I wouldn't blame the CEO for it. Its just one of the many things up the road they didn't travel up.