What exactly is your claim, that it violates the TOS, or that in general embedding images is illegal? I think I disproved the second enough, if you want to argue on that point then please provide sources. Maybe caselaw.
lets hope you didnt mix up my comments with others
if what you say is true anyone with xss vulnerability is liable for content included
I said that embedding is fine. Maybe you confused me with the people who were saying embedding images was illegal?