So long as you can load images on reddit itself I don't see the problem
A. Creating a super-simply image host that isn't full of crap and watermarks like Photobucket or Imgur will yield a profitable business.
B. A is in fact not profitable, and adding crap and watermarks is part of the normal evolution of an image hosting business once you gain moderate amounts of traction that starts to stress your finances.
https://www.reddit.com/r/interestingasfuck/comments/ag2vpg/a...
I once posted some random photo on Imgur to share with a larger group of friends, and I guess I left the display option set to the default of public. Next thing I know, I get a comment from an Imgurian who found it through the Imgur image listing saying something like "What is this? Why did you think I would care about this?"
If you browse imgur's New gallery you see images posted by mistake all the time.
So this is making the Reddit -> imgur experience more crappy for people browsing Reddit.
Imgur has been on a trend of walling off their garden, first deprecating the Mobile Web experience in favor of their frigging app, and now this. I can understand why they want to reduce their footprint for NSFW image hosting, but if you just wanted to look at an NSFW subreddit to see some images, this is going to make things more annoying.