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Hotlinking isn't "illegal" as in there is a law that says "You may not hotlink". You could get caught under "Computer mischief", or "Attempt of denial of service". If someone has a small website with barely any bandwidth and someone hotlinks an image, you can slow a server down to a crawl, not letting legit users access it.
Remember, people pay for bandwidth, and when you hotlink, you are costing a real person money! Simple as that.
ZoiNk
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"People can have the Model T in any color - so long as it's black." - Henry Ford
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