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Hmmm....
Looks like a pretty "karmicly" balanced system to me.
You mentioned that the traffic was being redirected so the only bandwidth that is used is by spiders (and the links from this site). The guy/gal that put up this page gets a little SE traffic and the image hosts get incoming links with a minimum of bandwidth load. Seems pretty fair to me. Plus the images are coming from Google's cache.
If I were going to cry foul it would be toward Google (or Yahoo or even MSN) for even having an image index in the first place.
Seems this guy found a clever way to use Google for his benefit. I have to have some respect for that, but I don;t know that I would call him a cheat, per se.
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