Indeed. They sprung this change on their users last summer - lots of forums and web commerce sites have been affected:
BBC News Apparently their advertising dollars are drying up. Nothing is really 'free' . . .
You should check with your ISP. Mine is with earthlink. Each email-box includes 10MB of webspace - with up to 8 email profiles (on the master account) that's 80MB. It's not alot but if one takes the time to crop images and lower the resolution one can get photos down to 50-100K each. And it's a paid service so images are online until one chooses to take them down.
