Lets assume its true and images can be stored on the Blockchain so what? Images can be stored on computers and servers etc, nothing new. Trying to label the blockchain "bad" because it can or maybe used in criminal activities, to me is a lame argument. Every legal human activity has been exploited by criminals. Should we now stop living because of that? This sounds like a case of giving a dog a bad name so justify killing it.
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Yes. Obviously hack journalists are going to portray this as something bad about the technology in general. It is slightly different to having a server which has the potential to store an image, because in this case, there is a real image on the blockchain of questionable legality.
No doubt but what do they suggest be done?