Did not know that as I dont have a PB account, but at least people can get their pictures back after stopping sharing. To this day I still cant get any of my imageshack pictures back which is part of the reason I always keep backups now.
But I still think that most people are over reacting, and that the majority that are tossing a tanty over it in the news are ebay sellers trying to make profit off PBs bandwidth for no cost.
As I said, I understand why they are doing this I just dont agree with the way that they have handled it.
As for other free hosts I know people that used to swear by http://tinypic.com/ so if anyone wants to look into them it's another option, other then that I dont know much about the other image hosts out there.
Perhaps another option could be hosting your pictures on your facebook pages (or we could make a page for otca pictures?) and link to those, not sure of FBs terms in regards to hotlinking pictures hosted on their site but if those pictures are only shared here it might be an option as it's not for profit and would fall under personal use