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In May 2007, awstats reports I had 262,835 hits from images.google.com, but by December 2007, it was down to 114,742 hits from images.google.com.
I have recently relaunched the site on a new domain name (used 301 redirects), and for January 2008 on the new domain name I had just 64,427 hits from images.google.com.
I have enabled the enhanced image search in my webmaster tools. Will this help? What are other users' experience of this tool?
In terms of whether enhanced image search can benifit you, according to Google at the time of launch, it's "supposed to". We've had very little feedback here from site owners on the issue. Some members here have applied it on all their sites and are happy with the results, and some others won't get near it.
You can find some related threads here through Site Search [webmasterworld.com], but I can't really see anything definitive, and I don't have that kind of data of my own.