It only applies to text and avatars. that's what neogaf.com is hosting, images that are imbedded into posts are hosted elsewhere (flickr, etc.) and subject to the license agreement on the host site, not neogaf.
now, no one really gives a shit about copyrights and such on the internet. Stuff is rehosted willy nilly and people re-appropriate stuff all the time, sometimes for financial gain (tumblr is a good example). But this update to the TOS doesn't give neogaf.com any right to use stuff that is linked, whether embedded or not.
This is ignoring the fact that a TOS is really fucking thin as far as a courtroom goes, or at least considering how many different nations neogaf users reside in. For instance, under Norwegian law a terms of service doesn't mean shit. American law, I don't know anything about, but phisheep posted in the thread and said there hadn't been any precedent set either way, so I wouldn't consider it all that heavy for American users either.
