For instance, at the moment, icon size may be up to 60 kb, and they claim you may have 1000 of them...which seems a little crazy. Also, they offer you hosting for up to 1000 pictures, maximum dimensions size of 1600x1024 and 60k (I dunno about you, but it's hard for an image of that size to be only 60kb or less). Still, for minor pic posts, that's cool. No paid accounts, all free (for now, anyway).
Now, the downside: ad-supported. Yep, you knew they had to be paying for this somehow. Other than journal pages, every internal page is emblazoned with an ad-bar across it.
So, I'll stick to my beloved LJ. I did go ahead and register 'archmage' there, and may use it for the occasional post with pix, linked back into here (not remote linked, they're pretty nasty about that...not blaming them, really), but I don't see it becoming anything I use on a regular basis.