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Instagram had/has filters that could make an otherwise "boring" picture look cool and vintage; which appealed to hipsters at the time. It was also exclusively an iPhone app until recently, which I think added to the "coolness".
Facebook home replaces the home screen on your phone (actually, it is just layered over it), allowing quick access to FB. It doesn't replace your OS or anything, and it is not a web browser. I am not sure it is hugely popular as it seems to generally get poor reviews, and, I believe it only works with certain Android phones.
Yea, I am not sure where you heard that Facebook Home is popular.
It isn't.
People are hating it and the first phone that came with it preinstalled (the HTC First) has already been discontinued.
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