Image Web sites grow thanks to blog boom
Some further evidence (Scroll to the third paragraph) that photo sharing is one of the largest in-demand features on the Internet.
Sites which host users' photos have grown more than 400% to 14.7 million users since January, according to a NetRatings report. “The large rise in blogging activity has lifted other sites,” said Jon Gibs, senior research manager. “The primary beneficiary has been image-hosting sites.”
IMHO I would say this is attributed to the fact that most blog providers, especially the free ones, don't have half of the Photo Management features of Blogware or require third party services to host the photos. As you can see by the photo albums I have in my navigation to the left, megapixel photo albums with slideshow capabilities are a real snap to setup with Blogware. Not to “toot our own horn”, but definitely easier than any other service I have tried and in my job that's most of them 
