I went ahead and installed Instagram on my phone and posted a photo to Facebook to test this out. Unfortunately, Facebook does not include the accompanying text in the feed.
You can see this for yourself by going to https://developers.facebook.com/tools/explorer and entering you access token. In the other text box, enter "YOUR_FACEBOOK_ID/feed" (replace YOUR_FACEBOOK_ID with your actual Facebook ID). Then click "Submit". This will display your raw feed.
As for showing up only when "Show all status messages" is checked, this is because the plugin assumes that any message that doesn't include a message, name, caption, or description is a status message. Changing this behavior would be more a little more complicated than the previous change that was made. Let me know if you want to proceed.