I'm a huge fan of Flickr - but Picassa is making a helluva good run at it. It feels like it's just a matter of time. So here's one note from a Flickr fan(boy?) that would keep me subscribed.
Increase the thumbnail size of the Recent Uploads (from Your Contacts). 100x100 is an image size that was nice and friendly for my 28.8 modem. Lets move on. I can't see jack at 100x100, so you're limiting my ability/interest in diving into my recent contact's photos. That's the worst thing you could do, especially now. You should be doing a TON of things that make want to dive into these images, from this very page.
For example, give me the ability to
- View more per page ("view 100 per page")
- Sort by most-favorited, most-commented, proximity, etc
- View enlarged image on hover (Bing's image-search beats Googles, a lot to learn there)
- Favorite an image from this page
Those are a couple off the top of my head. But the first and easiest thing to do: enlarge the thumbnail to something that gives the user a reasonable view of the image. Lets get crackin, Flickr. Time to get a little more clever about basic socially-minded UI before the big boy runs you out of town.