I haven't used Quark (4) in quite some time and don't even remeber that pref.
If you have all images stored in a folder that you want to use as the default source, it's just as easy to open that folder and just drag the images from it into the Indesign document, bypassing the Place (get picture) command.
If you use osx, once you access a folder once or twice it will be on the drop down menu at the top of the Place window, if you do use the place command.
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