First some context. HiLo Lens uses optics so we can keep it small. When using HiLO Lens for normal photos it provides the same angle of view as the standard iPhone.
Instagram uses square images. So HiLO Lens offers a wider angle shot. The following images will help explain. I took the first photo with the iPhone4 camera, then cropped it to show what Instagram would upload. I took another photo with the HiLO Lens attached, from the same position, then cropped it like Instagram.
The HiLO Lens App does not yet have an Instagram mode. But if there is enough interest it would be easy to add.
Yes, you should absolutely add an Instagram mode for the app.