So KVS, do you think that moderators should maintain an account on image sharing sites simply to edit other people's images? And that we should effectively start hosting these images in our accounts for the members who wish to share these images?

Sorry, no, that to me is somewhat beyond my remit. I'm happy to pass on the advice about how to resize images to members who are having difficulty. I'm also happy to remove images from a thread which are causing problems until such time as the member has been able to resize them themselves. I think asking me to host pictures on my account for other members simply because it's my duty as a mod opens up a can of legal, ethical and personal worms.