True, but DA is also asserting that they can copy the image and distribute it at their will as well (but not take credit for it); that by using their website to post yout art, you've given them same rights ("a non-exclusive, royalty-free license to reproduce, distribute, re-format, store, prepare derivative works based on, and publicly display and perform Your Content") as though they owned it. That, I think, is the sticking point.

From what I've heard, it's not just DA; it seems that there's a lot of art-hosting websites that are not good for posting original art on.  Is there any site that actually IS trustworthy?

I think you guys are overreacting. Everytime 6-8 months it happens. DA will use your drawings, your finished works, in their products, like adverstment an prints, not take a hold of your intelectual property.

Seriously..

That might sound a little harsh, but when you consider that simply reducing the size of the image to make a thumbnail to display on the front page counts as reformatting your deviation, it's not too harsh.  The same goes with distribution.  DevArt offers a mild (and  barely functioning if memory serves) feed that would allow you to display a handful of the most recent deviations submitted onto your own web page or blog.  Like flickr, you'd click the link for the image and be directed back to the dev art main site.  When you submit art to deviant, you're allowing them to do this.

I'm not too paranoid about deviant stealing anything I might submit, and if you want to get a (small) cut of the roylaties on your work, you could always submit your deviation as a print.