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(copying and extending myself from another reply in this thread, because it is actually more relevant here:)

The copyright issue is a red herring. Facebook could create an official "data:..."-url based "like" button that has the original image instead of linking to their server. It would be better for everyone involved, including facebook's bandwidth and the site's loading speed -- except that facebook would lose their tracking data.

The other thing that they would be unable to do would be to change the look of the image (because it would be _in_ the link); but I think it is a good thing that they (or a hacker) can't put a penis on every page that has a like button.

Really, the copyright thing is a PR deflection, not the real issue.

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