While there already are popular photo services (such as twitpic.com), none of them really evolved. None of them leveraged the dynamics and information flow of Twitter.
With img.ly we want to change that. Given our knowledge with photo platforms, we want to offer you a more sophisticated approach to publishing photos and images and constantly enhance the service to the needs of the community.
And yes, img.ly saves you some characters for your tweets 
Login with Twitter OAuth at: img.ly http://bit.ly/gZDRO @imgly #OAuth
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img.ly http://ping.fm/5OHYg Twitter OAuth Apps Showcase #TwitOAuth
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Vote Pedro! Er, i mean img.ly. I just gave it 5 stars: http://bit.ly/WMgMX Please RT
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