Well, I'm kind of confused now.
If I'm reading correctly, and Exo wasn't using that image against you on BZP, then was there a reason to punish him for it? People keep all sorts of things on their Maj/Photobucket/Flickr/Geocities/etc. It sounds as if Exo wasn't intending to use this against you on BZP, so I don't really see the problem you have with him specifically - unless he was planning to put it out there simply so other people could use it against you. Still, if someone else had found the image and was using it, then I would say yeah, go after that person, but don't go after Exo simply because he/she found the image on Exo's page. From what I've read, he just swiped it from someone else's image-host and uploaded it to his own. Unless he was planning to take credit for it, which would be plagiarism and a totally different story.
Again, I actually don't know the full story here - I know a lot of it, but not the whole thing. I'm sure there's plenty I'm not getting.
Personally, I did see the image - but I really didn't care. Everyone does stuff like that. I've done stuff like that. I probably had an embarrassing photo or two uploaded to the Internet at some point (gone now, for sure, after my many FTP wipes.) No big deal.
-Zyrael