However, I disagree that "everyone is doing it this way" is a good reason to do it this way.
Flickr, as I noted separately in this thread, doesn't do it this way. Changing privacy settings changes the URL, so someone using the URL (a common use case for images) can't use it any more. That's the "user expected" behavior. Facebook's behavior is a generally unwelcome surprise.
Additionally, since you're considering building image hosting: "token protected" URLs are well understood and often applied as a best effort solution to this problem. A token protected URL typically has an expiry, and in typical use is only valid briefly when issued for the visitor requesting the (authenticated) page containing embedded photos.
See: http://aws.typepad.com/aws/2009/11/new-amazon-cloudfront-fea...
Of course, the CDN edge cache servers have to cache the object yet respect the tokens, which requires a bit more intelligence from the cache, which is why "general industry practice" is to take the easier shortcut of not protecting the URL and image object at all.
Disclaimer: We offer token protected video and image CDN delivery, calling it "deep link protection". Our DLP, and token schemes in general, protect the link from misuse, not the asset.