zeus - 10:52 am on Feb 16, 2010 (gmt 0)
Yes they are still the no. 1 image search engine, specially the last 1-2 years after they have let more pictures pass the filter, before it just blocked to many and users went to other SE for images.
About the case in Malaysia, as said I have not seen it spread and thats of cause a good thing.
thanks for the comment.