you can change the file size limit to p much whatever you want, but if we (and by we I mean Nick J) are self hosting images, then we (and by we I mean FOA users) have to chip in real money to contribute towards the additional costs of hosting and serving them). and you can also set it to rehost linked images from elsewhere (which would have been great for the photobucket / flickr purges)
It will then let you either copy paste into the compose window, upload an image with the dialogue, or capture an image straight from your device’s camera. Problem is that modern smartfones are usually set to 0 compression 20+MP, so that’s a lot of 5+++MiB images that start getting hosted.
So… if @zach can setup an auto compress/resize to pull them down to a respectable filesize and @nickj is ok with it, AND enough people want to throw a few bucks a month at FOA, then sure, you can have magik image upload and never fuck with imgur/flickr/view-source-on-instagram again.
@Sh0rtsie outside of loopholing, you host elsewhere and paste the direct link to the image and discourse does the [img] type stuff for you.