Display taxonomy field in node display I created a vocabulary where terms have an image as additional field.
I want to show the image instead of the term name in the node page. How can I do this?
In Drupal 6.x, I would load the term and display it, but I guess in Drupal 7 with field API there must be a better way to do this.
You could define your own formatter with hook_field_formatter_info() and then select that in the Manage display screen of the content type/view mode you want to be displayed like that.

For reference, have a look at what taxonomy.module is doing: taxonomy_field_formatter_info(), taxonomy_field_formatter_prepare_view() and finally taxonomy_field_formatter_view().