Kris J B posted an interesting story at PetaPixel about the balance between posting images online freely and not posting for fear of theft. The comment thread is worth looking at as well as the detailed story.
In the end, I continue to post images to Flickr and post embed of them here, as well as allow my contacts on Flickr to embed my images elsewhere. Have I been ripped off? Absolutely. Do I care? Absolutely. Will it stop me from posting images online? No.