Yeah, it does appear to be gone on my AOL email account, though "attached" pictures can still be fetched and displayed.
I'm sure they did it for a reason, probably to streamline the POP mail server action, less graphics = less bandwidth being eaten ... as if the Android suffered severely in one area it was terrible non-Gmail email functionality.
I haven't sent a lot of emails since the cupcake update, but prior to the update I would have tremendous difficulty getting emails out of the "outbox" under any conditions other than being in a high speed Wi-Fi envinronment, so much so that if I wasn't home in my Wi-Fi I would compose emails, save as draft, then log into AOL's web mail on the web browser and send it from there (which does work wonders if you want to get an email out without it getting stuck in your outbox).
But, I digress. Yeah, it's gone.
