Looks interesting but I would be aware of a few concerns.
For example, what you quoted sounds like you can really use the images for anything you wish, but what about this (also part of the legalese of the terms of use):
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The TinyPic Services are for the personal use of Users and may be used for promotional purposes as well, but direct commercial endeavors may only be used if they are specifically endorsed or authorized by TinyPic.
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I would think it would be important to ask before using them on a site designed to make money or in ebooks or whatever.
Also, some may be concerned about what this means:
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In order to participate in certain TinyPic Services, you may be notified that you are required to download software or content and/or agree to additional terms and conditions from TinyPic.
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I also note statements on the site observing that when you register to use the site, or in other processes, they collect personal information about you so they can place ads on their site directed at you. You may or may not feel this is a worthwhile trade for your personal data.
Finally, I would note that the pictures/images come from participants and the legality of their use depends on their honesty as to having rights to contribute the pictures. This may or may not be adequate to protect users. It would likely be adequate (?). At the same time, there is not even a mention of model rights so any images with people in them would be of questionable use.