EDIT: Evidently you can right-click and view image. I thought that wouldn't get me to the original image since the image as presented in search is smaller in resolution than what Google says the image really is. Either way, in DDG the image actually links to the damn image and not to the site where the image supposedly maybe appears on.
If DDG / Bing become big enough, they too will be forced to stop their practice.
https://9to5google.com/2018/02/09/google-images-features-get...
The case with linking is far from settled.
Legal or not, I don't care though. But I do look forward to highly anonymized p2p networks with useful services and software we can rely on by the time the lawmakers have made the internet useless.
Having said that, I think Goggle is just hiding behind the lawsuit threats.
I hope they wise up and improve as I actually would rather have 2-3 highly competitive search companies rather than just 1.
Maybe your complaint is really that their appeals process is too opaque or difficult. There I agree, but I don't fault them for stopping short of perfect on their AI classifiers.