There are lots of opportunities with blogs today - and it's really growing.
In truth the actual "blog" is supposed to be purely text-based however there are some hybrids and off-shoots out there that utilize images.
Our blog uses images to illustrate webmaster tips and such. It's not a "pure" blog in that sense, but it really gets the job done as a tip-type and industry news type of thing.
Other blog types are moblogs and vblogs that feature photos or video... there are also audio blogs being used that I've seen (but not heard - lol)... so there are a lot of new options/opportunities.
With regard to someone using your images without permission I would agree, the rules should apply like a TGP or something else - but what I would do is to take a page from Lightspeed and instead of freaking out - EMBRACE IT! Put your logo or watermark and URL on every stinking image so even if they don't link it - the surfers will see where they can get more of that cool content. I remember in a newbie seminar years ago Steve said his theory was "why fight it? they're gonna hotlink it anyway - why not make something off it?"
