No, Snapchat has the potential to build something that is much bigger and management has so far demonstrated that they have the chops and ambition to get this done.
Snapchat has the stickiness of Whatsapp, BBM, and text messaging — combined with the modern UI and rich media elements that we are all learning to love. It is a medium of communication that is very different from network photo sharing, and more akin to what SMS of the future may ultimately evolve to.
Imagine a world where your default messaging is comprised of snapchats as a primary means of communication instead of just using text message? I think this is already happening in a way, and this is why I believe that Snapchat still has room to grow and bargain for more money in a sale in the near future.
Snapchat is the primary social network and sharing application used by my kids. It has rapidly diminished the importance of Instagram in their lives and it gives them something that has never existed before: the impermanence of a casual comment combined with the immediacy and intimacy of mobile delivery.