This is genius! I was just this week trying to think of some way to abuse slow-loading of images by generating the image as data comes in.
This is perfect.
This is perfect.
Instead of waiting for upload to finish before giving you a URL.
But you'd need control over the image hosting backend cuz ImageShack won't let you do it.
[1] https://github.com/shurcooL/InstantBackgroundUploader_OS-X https://github.com/shurcooL/InstantBackgroundUploader_Window...
It may be a little complicated to make it do this, given how it works currently, but I might try it out.