I started off with Photobucket until they imploded, then moved to Flickr.
Flickr's functionality has suffered since Yahoo sold it. I was not aware of the restrictions on what you can host on the service that you mentioned. I have had no difficulty with them (yet), but since a large part of what I put on Flickr are screen captures of planning documents, I could certainly be at risk.
I wonder if those restrictions apply to a paid Flickr subscription, or just to the free account? I don't currently have enough content on their service to justify a paid account, and likely won't for another couple of years, but it makes me wonder if I should upgrade..........