What I did about this was to provide a free image hosting service for my membership that is onboard and on same host as the board - and they use it almost exclusively now. I have since installed it on two other folks boards and it's very well received.
It allows upload via hotlink as well as upload from computer. Once the images are there they don't go away and you can administer them as well.
Get the freeware for this at: codefuture.co.uk (CF Image Host) and upload it to your server.
Provide a link to it for your members by adding a clicky button in all the WYSIWYG and quick editors.
You'll be amazed.
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