Me and my friends have started a site called Pixita.com it lets you upload photos, pictures, avatars, sigs, images of all kinds. Like Imageshack. We offer 2MB upload per image. The service is completely free and we never remove images because they are being viewed "to many times" we only ever remove images if it is severly damaging the expirence for other users (e.g. 2Mb Image posted on Digg.com lol). Anyway try it out see what ya think http://www.pixita.com/
It's still in Beta. We had quite a large closed-beta with 70 testers. We managed to iron out enough bugs to launch it open-beta yesterday night. Feel free to use the service or "spread the word" as it were.
If you find any problems please post them in this thread and I'll make sure they are addressed.