I am so out of the loop now, I had no idea! It's about time that this got an HD release on XBLA, PSN, and Steam. Now the only question is which platform to pick it up on...
I got it for the xbox, had some buggy issues with it although I don't know if it is because I'm on the beta dashboard which has shown problems elsewhere.
I doubt it. I don't think XBL has a feature like that similar to the DC. Granted, you'd think that you could pull JPGs off a flash drive or something, but I'm not surprised by any means.
Instead, they had a contest where your artwork could be featured as in game graffiti.