Hey, guys: I think it would be amazing if you added code to hide broken image links.
blackmilkclothing.com appears to be using a Shopify plugin with similar functionality, and it looks they do a 'display: none' on a div when an image link is broken/empty. The image is there in source when you click 'View Source', but the CSS hides it. Might be a bit of a hack, but it works.
Keep up the good work!