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it isn't where the picture is hosted, it is where it APPEARS to be. IMHO, If the url appears to be their site, then they published it. Without them nobody would see the image.
It's the same reason why you can't just move all the content offshore and hotlink it into a paysite.
Hint: Picposts and other sites that are dependant on hotlinking images are screwed. They have no way to be sure that the images are and REMAIN softcore. What is softcore right now can be hardcore in seconds. Pretty much all of those business models have had major holes poked in them this month.
Alex
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