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Why not just use a company like Google Drive or Dropbox for hositng your images? It's free, fast, have incredible uptime and reliability, have two step login for security, you can search your images (Google only), have API's to allow plugins and upload apps and you can replace the images at a later date if you want.

The likes of imagecrave, lulzimg, etc. can't compete with companies of this size.
 
Why not just use a company like Google Drive or Dropbox for hositng your images? It's free, fast, have incredible uptime and reliability, have two step login for security, you can search your images (Google only), have API's to allow plugins and upload apps and you can replace the images at a later date if you want.

The likes of imagecrave, lulzimg, etc. can't compete with companies of this size.

Google or any company of that size often offer services that do the job but doesn't feel that great on all the possible ways that people may use it. There are tons of Google services that feel awkward for some kind of particular usage, in this case casual image hosting. That's why people uses this alternative services.

The type of files that you want to host in a casual image host like tinypic, imgur, imgcrave, imageshack, etc are way different that the content that you upload to Flickr, Picasa or Dropbox. Since the content is not the same, the feel over the system is not that great and people just keep using the services provided by this other companies. I'm not saying that big services doesn't fill the need, I'm saying that they do but some users don't feel it comfortable.

Problem comes when companies that get a cheap server promote a totally unstable service because they just get a shared hosting plan with "unlimited" features and things like this happen... In this case your point has complete sense. But there are many factors involved, perhaps they where under a DDoS attack, they break a HDD, etc.

As a side comment... I believe that if you want to have something that fits your needs and feel it better than a service provided by a big company you should try to own your own personal service. People do this pretty often with email, image hosting, file hosting, etc. That is the best way to have something that you feel it great and that won't kill the server resources. You will have your own tos, rules, access, etc. And if you feel that your server can handle it you can offer it to the public.
 
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