There has been added new images and the filter has got a little turn to the better, but there is stil a lot of Images missing with filter on, also I still think some site with images gets filtered if other sites with no family friendly text are hotlinking to ones website, thats really a problem.
You can see this when you make a site:www.dmain.com search in google image, of cause not all hotlinkers have bad text on it and even if you have a hotlinking protection, it wil still hurt you, be cause the broken image is still there.
I find this issue to be quite bizarre. If I get a chance, I will try to ask about it at PubCon. I suppose it's possible that Google wants to be extra careful with images (they've recently shown some embarrassing images quite prominently in "universl" search results) - but still, it seems odd.
well Tedster, I have been following the google Images searches for 5 years now and thats my only conclusion, when I see some sites is totaly filtered, but I will also say this, I dont expect a perfect image results but such a bug, could be fixed so why not do it.