Look out! There's yet another loophole for companies to take your images and use them (for profit) without your permission. Check out this article on by Gary Martin.
Blocking the fancy.com referrer at the server or CMS level might go a long way towards fixing that problem (blocking image hot-linking) -- I can't think of any reason to allow it given that kind of usage pattern. (Come to think of it, why would anyone allow hot-linking if they're concerned about people respecting their image copyrights?)
On a related note, Google's image search uses a variety of techniques so they can display your site's images within the search results pages, in a way that seems designed to keep users engaged on images.google.com and rather than driving them to your site. Does Google profit from that? Of course, even if indirectly. I suppose one could argue that we gain some increased traffic from Google image search, though others have observed a significant decline since they rolled out their newer image search.