It's bad enough to have someone steal your content, but this guy was actually stealing our pictures directly from our website. He wasn't even smart enough to copy the pictures, he was 'direct link' bandwidth stealing, that's how we found his sit in our web tracking stats..
He was using a free hosting service, so we contacted the company and they just shut down the site. I hate thieves!
I've shut down many sites over this exact issue. At one point in time, an official Turkish government website of all things was doing this exact thing to one of my pages. I tried and tried to get them to remove the page but they never replied. Eventually the page disappeared from their website.
It's kind of hard to force a foreign government to remove a page from their site that they stole from you.
I now subscribe to a service that automatically looks for copies of my works on the Internet and reports back to me on a regular basis.
Watch out tho for blocking people from taking your images. I did it on my site, and only realised after a month or so that it was also blocking Google from displaying my images in their cached version of my site. I didn't realise they did it by getting the images from my site!
I agree... a teacher once linked to pull an image for her class to see on her school webpage (no link or attribution to me, tho). A food site linked to pull a photo of mine, and it included a link to my site. I was flattered in both cases. For outright theft I'd be mad, tho.
Blocking Google Image is not a big loss. People looking for pics rarely convert into real visitors or customers. I've blocked Google Image by blocking everyone else, and I'm better off. I don't need this type of traffic. But then, through your htaccess, you can still allow Google to cache your images and block everyone else.