As a photographer and writer, I also suggest that Yahoo consider removing this software and making a statement about the seriousness (and potential legal implications) of using software like "Smush it" to remove metadata from images (or other media assets). My guess is that the engineers were just trying to make something that improved performance, but it could have very bad consequences for copyright holders.
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Andrew Darlow
Editor, The Imaging Buffet
http://www.imagingbuffet.comAuthor, 301 Inkjet Tips and Techniques:
An Essential Printing Resource for Photographers -
http://www.inkjettips.com