http://i.imgur.com/RUQxvfD.jpg
It is working for me. However, in no way, am I stating that it isn't for everyone else or that I even doubt that it isn't for everyone else.
Edit:
http://i.imgur.com/QUihJ8i.jpg
Just wanted to add a picture of the Photos App when I'm in a folder located on my SkyDrive, illustrating that the "This PC" heading indeed does transition to saying "SkyDrive" instead.
Edit2: Also, this doesn't really contradict the statement made by Carmen. In the past, we were able to add locations to the Photos App outside of the native Pictures Library. This is the functionality that has been removed and my being able to add my SkyDrive pictures to the native Windows Pictures Library is merely a workaround that has allowed me to view my SkyDrive pictures via the Photos App (and have it's pictures cycle through the live tile). The functionality to add other locations natively in the Photos App, however, is indeed gone. I merely wanted to point out that adding locations to the Pictures Library has worked for me, and could possibly work as a workaround in the meantime for others.

