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@George, good point. I may in the future be willing to donate some space and bandwidth, but that won't help with latency (though I get good ping times of 17ms from my server to my house, a few hundred miles away). Anyway, considered using DropBox maybe? It has a PHP API and public URLs. Or searching for an image hosting service which doesn't rate limit an API key?
@George, why do you send it to imgur? Why not save it to the server this PHP script runs on, or better yet, use a static web host(usually providing gigs of space for nearly free) to host these images (and instead upload there?)