It's bad in that the media is completely disconnected from the posts. If the media provider you chose goes down, nobody will be able to see the stuff you've posted anymore. If that subreply server you're using gets taken down, you'll have lots of orphaned stuff on that media upload website.

That you enjoyed it more when it didn't have a "native" image integration is probably unrelated to that fact but just that the site changed in a lot of other ways. How does the hostname where the image gets loaded from matter?

For discussions among technical people, it might not be bad! It works well on HN. Unfortunately, interfaces that developers love are often not appealing— maybe not even useable in some cases— for other users.