A few days ago I posted some photos from the iPhone I was happy with. So yesterday I updated to iOS7, but it seems that Instagram will crash when you try to take a photo unless the microphone is turned on.
When first started up it asked for permission to access the mic, I denied, and took the first photo. On subsequent tries to take a photo, no luck.
I like to have full control over Privacy settings, so until this bug is fixed its plain old camera phone for now!
Get to it developers!
EDIT 28/09: Latest updated fixes this!