Hosting files (images) directly
Yes, it can be used as an image (or any kind of file) online storage, where the raw file link is exported and can be embedded into your blog or other websites. Images, videos, songs, PDFs..., you name it.
This GIF below is a sample of a hosted image.
You can either copy the direct link from onedrive-vercel-index's preview page, or generate your own direct link by adding constructing the URL like so: