Well, as free hosted galleries are not always useful for all kinds of promotion, especially if you want to offer your visitors some added value AND FHGs are the only promo content available, the questions is whether to promote the site or not at all.

So sometimes I use the pictures from FHGs for other promotional purposes, but without altering them in any way. If the sponsor doesn't want me to use material from FHGs in other ways, I don't do it. Even if that means not promoting the site.

There are so many other ways of promoting sites than just throwing out FHGs. If the sponsor doesn't want some creative promotion, well that's fine with me but at the end it's their loss...