Why shouldn't image and video hosting be a paid service?
I don't think there ever was any free method of mass distributing information. Or storing it if someone didn't find it interesting. If you need to share something, you should burden the cost. Just because some idiots thought they had a model that didn't work doesn't mean there isn't real costs involved. And those should be paid. In free market they should approach margin.
The world lacks a good system for microtransactions to make paying the actual costs feasible.
Also I'm already paying my ISP for a connection, and so is everyone that views the things I host, so personally I hope for advances in P2P to leverage that existing already-paid-for bandwidth for distribution instead of having to toss more money on top.
I don't think there ever was any free method of mass distributing information. Or storing it if someone didn't find it interesting. If you need to share something, you should burden the cost. Just because some idiots thought they had a model that didn't work doesn't mean there isn't real costs involved. And those should be paid. In free market they should approach margin.