Hi Widget,
We use the attachment manager (on this site) so that the images stay on the site for all to see in the future. When images are stored on an external site they can dissapear in the future like what happened with image magic in the past.
We have corrected some of Blended images in post so that we retain them for all of our registered users in the future.
This feature was brought in about a year or two ago and works quite well providing the images are below 4mb.
