I am going to cancel my subscription. Onion comes out a loser on this.
Just remember that unless you cancel via a direct letter to the editorial offices in New York (addressed to specific human beings too, not some "letter to the editor",) they won't have a clue as to why you're canceling. Just calling the 800 "subscription services" number will ensure the people that matter will never find out why you canceled.
They were coming out losers anyway on this - it costs them money everytime somebody posted a pic hosted on their website. A single thread on FR could probably cause quite a little bump in their bandwidth costs.
I'm just surprised they took this long - they need to check their web logs a little bit more closely in the future. See my above post (#197 or so) for an explanation of why it costs them money.