I switched to smugmug.com. It is a pay site but the basic package is only $29.99 per year and it has better features than IS. I hate paying for what we used to get for free but my understanding is that all free sites are going to clamp down like IS so it appears inevitable that some form of payment will be necessary.
Smugmug.com also permits other levels of use including a "pro" feature that I signed up for at $100 per year which will allow me to sell photos directly through their site, link it to my personal site and they will do the printing, shipping, collection of payments, etc. all from the one site. However, the basic package is all that most people would ever need to host their photos and provide a good looking site.
Most importantly, it will permit viewing and downloading of full resolution photos and/or prevent others from "lifting" your photos off the site by watermarking them. You control whether they will be watermarked or protected in some other fashion so the flexibility is a nice feature.