I agree these placeholders are annoying. I've just made a change for Material 1.4.2 where these failed images should be hidden. I re-write the "img" tag to have an "onerror" handler, which when called sets the item to hidden. @Michael if you make a similar change in MAI, I'll remove it from Material. But I guess its something the client, and not the plugin, should handle.
I would, in general, agree. But in this particular case I'm actually creating the img tag in the plugin code on the server. Thus I can easily insert an onerror handler, too. I'll have an update later today.
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