I get too much blatant junk mail in my Inbox that Microsoft spam-filtering just can't seem to figure out ...
You shouldn't be seeing 'blatant junk mail' in your inbox. If you are, your filter level is set too low. Safe list only will guarantee that you never get spam in your inbox.
I use Yahoo! Mail as my primary account as well as GMail and probably about a dozen other email addresses and the Hotmail account is the only one with the spam problem. Needing to set the account to "Safe list only" does not make for a good spam filter... that basically creates a simple white list that my grandmother could write a filter to handle. I've had my Yahoo! Mail account since the beginning of time as well (my primary email account) and I bet I get one piece of junk mail that slips through every few months.
Regardless, the junk mail is not the issue. The issue is that if a mail client says it's going to block images, it should block images... period. The ridiculous response from Microsoft does not even acknowledge that this is a bug - which it most definitely is.
-- Jim