I wouldn't call that cracked. Not even close.
I'd say those are simply examples of sites being run by webmasters who don't know even the first thing about protecting their directories from being viewed.
IndexIgnore *
or
IndexIgnore *.gif *.jpg
in the .htaccess file cures that problem.
An index.html page in the image directories can be used to redirect the peeping tom surfers to exactly where you want them to go. Meta refreshes, Javascript, or php code on the index page will do the job.
Basic
hotlink protection code for images will stop the other problems.
I'm not saying that Red Knights guy is okay. I don't know him at all. I'm just saying he's not doing anything that can't be prevented.