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One of the advantages of a link to a picture is that you can update the picture and it will automatically update anytime anybody reads the thread.
Personally, I FTP pictures to my web site and link them to here. It's a lot more straightforward than that convoluted PhotoBucket process described in the link.
One request I have for people linking in pictures to threads is that they try to put the pictures in a permanent location so the link will still be good in the future. I've seen many threads where the link is dead so the picture doesn't show up.
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.