As someone who manages multiple Fediverse servers, I wanted to share a friendly perspective on image uploads. If the option to upload images is available on a server, it's likely because the administrator wants you to utilize that feature. Otherwise, they would simply disable it to avoid incurring additional costs for hosting image files. So go ahead and feel free to make use of image uploads when they're available!
I've had the chance to join several big servers and even manage my own (calckey.social). Usually, they set an upload size limit of around 10-15MB, which is more than sufficient for most photos.
However, I must say that I'm not a big fan of Imgur. It's not the best experience for visitors and feels like a prime example of something being unnecessarily unpleasant. I believe people mainly use Imgur out of habit, and the drawbacks haven't been significant enough to overcome that familiarity just yet.
