Thanks for saving me that bit of Googling, Armen! That script doesn't seem to work for G2, but
this one claims to.
You can restrict visibility of images on Flickr so that they're only accessible to contacts flagged family and/or friends. And I don't generally upload images that I wouldn't want to get into someone else's hands.
I hosted my own server at home for about five years and gave that up when I moved into an apartment last year. It's generally too much work for me to deal with, especially when you depend on it for whatever reason and it goes belly up.

I now pay for a hosting account with TextDrive (which I think is going to change soon) and use Flickr extensively. I'm still responsible for the software I run on my hosted account (WordPress, mainly) and even that's more of a pain than I want to deal with most of the time...
Ian, if you want to make the jump to Flickr, I'd be happy to help you there. I've got some experience with the Flickr API and I used to have some decent PHP chops.