I want the zoom,
You are totally in control of the amount of zoom using IH2. The primary difference seems to be that IH2 shows the entire image while the Flash version you mention only shows part of the image. How is that better?

plus it protects your images.
IH2 let's me customize the watermark for size and location. Further, I suspect with a little searching, you could figure out how to use Javascript to disable the right click and save option.

I need a fancier option.
Best wishes on writing your code.