Sure, a captcha of "lI0Ol1o" would would probably be unreadable to a computer ... but it would be to a human too.
We're quickly approaching the point that image recognition is getting as good at solving image captchas as humans are, and when we do, we'll need to find some other way to do it.
[1]: http://www.labnol.org/internet/favorites/cats-inside-rapidsh...
Which is exactly why they added those. Premium accounts do not require the user to enter a captcha for every download. So every user who was annoyed by the "cats captcha" was a potential customer.
A computer can do statistical sampling of many CAPTCHAs generated by the same website, and then try to reverse-engineer the image munging algorithm.
Humans, OTOH will probably give up after 2 tries and already struggle to get |O0Il1l right.
Imagine picking letters with the right frequencies. Now, instead of doing that, pick pairs of letters, with the right frequency, so that each pair "chains" with the previous. If you have good pair frequency data, you can do longer than pairs and get even closer to English.
However having your own custom captcha probably helped quite a bit. I'm guessing spammers aren't going to bother writing custom software to decode your captcha unless you have a major site.