And I continue to stand by my own interim solution of hosting the images in my own posts on a site like imgur and remote-linking to them to eliminate storage costs, and then always specifying the width attribute on the img tag in BBCode format so that the posting shows up the way you want it to.
Problem with that is that half a year, or a year from now, imgur and other hosts may go bye bye (bankrupt, bought by others etc) or they may delete old files and then some forum member tries to see your post and your pictures and they no longer resolve to anything.
The old excuses (pictures taking too much disk space, too much backup space, daily backup takes too long), bandwidth is expensive etc... are just excuses, and weak ones.
You can add a 500GB-1TB disk to a server for 5-15$ a month, you can get 100 mbps unmetered bandwidth for under 100$ a month (server included), backups should be incremental (backup only differences not the whole drive) etc etc
The only valid reason against large pictures is imho that takes too long for pages to load to people with slow connections...
a good idea would be to store on the server both a 800x600/1024x768 version AND the original full size picture. Then, when clicking on thumbnail, show the resized picture with a link at the bottom of the picture to the full picture.