I've seen the same thing - an app that wants to use the camera just crashes. But what I discovered I could do last night, was I can take a picture with the camera, then view it (click on it), and there's a "share" option. When I click that, one of the options is to share with Picsay (since I have it installed). I was able to tweet a picture taken on the edge that way with no problem.

I have it on my list to check my twitter app to see whether I can change the default picture site it uses, though. What I don't like about yfrog is that although all your pics are ordered together and you can browse back and forth everything I've posted, there's no yfrog/sarah11918, so it's not easy to just send someone to a page and say "Here are my pics that I've tweeted." I think with TwitPic you actually get your own page.

On a semi-related note (since twitter is one of the few ways I can get pictures uploaded from the edge right now b/c of my ongoing Picasa woes), if you tweet a picture and include a #hashtag, a website called HashAlbum automatically creates an album for you. I keep meaning to hashtag all my "Today's office setup" tweeted pics, where I upload the various configurations in which I'm using the edge. It does require you to tweet the pictures, though, so it's not a batch upload option.