Re: There's a difference between paying your fair share and extortion
They might want those users to just go away, I'd agree with you based on their pricing structure.... but "those users" probably make up 80% or more of their user base. I don't know anyone who uses Photobucket for anything else than dumping pictures to put on a forum.
So a huge drop in advertising revenue, a huge drop in page visits, their name is just going to go the way of FriendsReunited and Bebo. A very odd move.
$400 definitely sounds like "get off my land" rather than "would you mind just giving us a bit to help towards our costs please?"