LiveJournal does not host any extraneous pictures. Take Joey's layout. Her images hosted on another space. If she makes a layout with 95839058 pictures, it hurts her web provider's bandwidth, NOT LiveJournal. The only bandwidth she would use would be the entries she writes, and her icons, but they're giving that to her for free.
That thing's mooooonths old. And it's WRONG. LiveJournal said that it would remove customizing with div, span, img, and it did. You can still do whatever you want with style, base, meta, and link. Don't worry, you're in no danger.
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