The <a href="http://www.ownedcore.com/forums/world-of-warcraft/world-of-wa...">article</a> showed that Blizzard encodes information into the screenshots you've taken.
The information that is watermarked:
1. Account Name / Account ID
2. Time Stamp
3. Realm Information
4. Realm IP (Probably for Private Servers)
5. Possibly More Information
Does the Watermark Contain Sensitive Data?
Yes and no. If you don't care that people know your alts are linked to your main and are only playing on legitimate servers, then this watermark does not contain anything important. My friend did point out that Blizzard had its Account ID's stolen in the recent incident. That could cause account security issues, but at this time, it is slightly far fetched. (I do not approve of playing on Private Servers; I am just pointing out this could affect you if you do).
It can be Turned Off
You can bypass this "watermarking" process by editing your WTF file to be (anything under 10 will enable the watermark):
SET screenshotQuality "10"
Why do I, Dandruff, Care?
I care because I do NOT appreciate people submitting my non-anonymous data on my behalf without my consent. I feel just as violated by this incident as I do by people that sell my Email address. The same! I can kind of understand why Blizzard thinks they can watermark their screenshots, but at the same time, I am enraged that I wasn't made aware through some sort of opt in, or ToS agreement. Needless to say, I turned it off by setting the "screenshotQuality" in my WTF file.