ah, you misunderstand!
you will still see the images! you won't see "www.whatever.com/monkey.jpg", you'll see the actual image. we just won't be hosting it.
as for image linked by bandwidth theif.... that is so old school. nobody does that anymore. everyone understands that images float around the interwebs.
here is an example of an image hosted somewhere else, and when you choose "external URL" (this image is on imgur):
Except many blogs, like those that are in blogspot and many other sites.
I know that you probably allow that and think that there rest of the websites are like that, but almost every time that I have tried to do it, I have received the "hot linking not allowed" or an ugly picture that shouldn´t be there.
Probably is old school, and probably you haven´t see it lately.
But I have found it almost every time that I have tried to link images directly.
Now, about the images that are already stored, are they going to dissapear?
how will you upload your home-made images? EASILY!
go here: http://imgur.com/ and click on UPLOAD IMAGE
or, go here: http://imgur.com/apps and get something even easier.
now, all of your images will be stored, saved, managed by you very easily.
again, the "no hotlinking" thing is so over... you can tell that all of those "DONT HOTLINK ME!!" images were made 10 years ago based on their fonts, colors, and eye-gouging flashes :P
and here is one from blogspot: