The problem is that image hosting ended up being a significant cost in running the service for free and so I had to turn it off.
You can easily use another upload service to add images to, and then just paste the link in your wiki page. This will make it so the image is displayed.
For an example, view the wiki source of this page:
If you would be willing to pay a subscription of $5 per month for 100MB of uploads per month to be added to your wiki, feel free to let me know via the bug tracker (http://bugs.editthis.info).
An error occurred while saving the commentSolar Dragon commented
Okay now, removing uploads was stupid. Images are an important source of any wiki. To remove uploads is just plain stupid. Also, uploading from an external source is not a plausible option. Many images would be good in thumbnails which is not possible with external images, neither is galleries.