Exactly, sharing personal photos is insanely profitable if it keeps people on your website. You need to have a core value prop and just like TV it needs to be the primary user experience. Facebook is just readjusting for that after initially ramping up the money firehose.
It shows Facebook has a long term focus which you would expect from a public company.
Facebook makes money as long as users continue using its services. It doesn't matter much what they are doing as long as they keep coming back.