Yep. Imgur realized that being solely a user-friendly image host wasn't much of a money maker, so they started gradually turning into the Photobucket style messes that it was originally aiming to destroy. Now they run their own community/discussion site and try to show it down the throat of anyone who lands there trying to look at a picture. It's not been good for the user experience of anyone who was just there for one image. And it's also in pretty direct competition with reddit's popular non-text subreddits.
I really can't fault reddit for taking this step. They're the ones who have the ad views on pages linking to (or embedding) these images, they may as well streamline things and manage the uploads/hosting in house.
One hopes Imgur could see this coming.