Flickr's management have issued a sequence of content-free communiqués regretting the decision and saying that they're working on a solution, and basically spinning like Tony Blair on speed to appear cool and easy-going, without actually committing to any course of action; it appears that for all their professed hipness, they have as much input into how Flickr is actually run as Frank the Goat has into LiveJournal, and the risk-averse bean-counters and lawyers at Yahoo HQ are calling the shots.
Anyway, as long as this policy is in place, I will not be uploading new photographs to my Flickr account, and I urge those who are concerned about freedom of speech to do the same. Should this policy persist, I will look for alternative hosting for my photographs.