[scaturr]

I am seeing the same arguments made :) - Watermarking an on-page element does allow the original image to be access quite easily.

However, I will reiterate it is pretty useful to watermark from a user upload. You can watermark an image from the user's local machine - upload it, then display it. All from the client. I don't believe there is any easy in circumventing this method - if there is I would love to see it :)