I'm liking this new feature of Live Search Images, I can do a search and do some quick refining and tweaking to get the results I want really quick. It's a great way of honing in on the stuff you really want to find without having to be really specific right from the start.
Check it out here: http://search.live.com/images/results.aspx?q=Hybrid+Dogs&FORM=QSIR3
You just noticed this? I liked how the scratchpad was in the older version of Live Image Search. There was an "option" if you wanted to see the scratchpad at all, or if you could close it. I find that the scratchpad took up a lot of page space, and the filtering tools also take up space in the top region of the pane, reducing how much you can see of your collection at one moment.
I hope they bring the older scratchpad back sometime.