I personally feel that a signature -- text, graphic, or otherwise -- should never be more than 1/2 the height of the message it's signing. So if you're someone who posts one-liners, give up on the sig entirely. Of course, that doesn't mean I could use a half-page-long sig; there has to be some upper limit!
And yeah, that one in particular bothered me -- not only for its spamminess, but for the example it sets. One person with a sig like that is merely annoying ... ten of them would make the forum nearly unusable (I've seen it happen, though with gamers).
Advertising itself, it it is discrete and tasteful -- "My new book XXX of the YYY is out, buy it at zzz.com" -- isn't a bad thing. Buying books from fellow MR members is good. Those super-sigs, on the other hand, are the equivalent of a bilboard in your face.
I'd vote for no graphics in sigs at all.
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