Trust is Fragile
If the 100,000,000th uploaded file was actually named Startup-Revenue-Forecast.ppt or 2011-Tax-Return.pdf I'm fairly certain that the name or contents wouldn't have been mentioned. I think the fact that it was cat.jpg spawned the idea of referencing it at all, and honestly if I were in their place I would have made the same joke. I think most people would have. But good on them for pulling a reverse Streisand Effect (http://en.wikipedia.org/wiki/Streisand_effect) which frames the discussion in a positive light ("how can we change and do better?") instead of a negative one.