I don't care to speak out for or against Photobucket or Rob. That said, I think the WAY Photobucket conducted their business to be shady.
I get that it takes time, money, and resources to offer hosting services to the public. I'd be willing to pay for that service as it's something I can't set up on my own. With that said, I don't believe in paying ransom to extortionists which is exactly what Photobucket has done. If they said the "free" accounts were financially draining on the company and they need to charge for hosting services then that's an issue of basic economics. However, they choose to extort people, hold accounts under ransom, and block a wealth of information to millions of posts/users out of greed with no forewarning then I see them as an internet bully.
They could have blocker farther uploading in free accounts, given a warning, made a public statement, or something. Now they just locked us up and said "pay up or go home." Their business move there didn't follow common courtesy as I see it and I don't do business with folks that don't value my business enough to at least be courteous.