Okay, that was really lame! I figured out what the problem was, but have no idea how it could have happened.
I figured it out by trying to load a new image, and getting an error message that jpg is not allowed.
There's a setting on the settings page called (image upload) section, called "Valid file extensions". Somehow on my system this value got changed to php, which is ridiculous as far as I can tell: any reason this value would ever say "php"?
So, anyway, I added jpg,gif,png etc as valid image types, and hit refresh, and Voila! All my images are back.
Well, I thought I'd tell you what was up, in case anyone else ever has this problem.
Meanwhile, off to change all my passwords, 'cause I know I certainly didn't change that value to "php"
Regards,
Basil