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 Its not about all about images and media though. There are tons of other files that need to be hosted and re-uploaded in their original form

IMO a big shortcoming of most hosting services is they only focus on the media, as if that where the only things the internet was made of

Also, brilliant ideas? If I ever claimed to have brilliant ideas I would end up eating my words within a month 
 if a file is treated as a black box there is only so much we can do.  if we can open the file and understand what it contains we can do more.  for example we can see that a word document and pdf document may actually be the same document.  this is obviously not going to be practical for some exotic file types as a computer can't be expected to recognize them all.  but my guess is over 90% of all files uploaded are JPEG and nobody says we can't adopt different approaches to different file types.

i bring all this up because recently GAB was in the news for restricting file uploads only to paying members.  GAB was banned by credit card processors making it harder for them to make ends meet financially.  any anti-establishment social media should expect the same fate of getting cut off from mainstream banking channels and looking for ways to cut costs.

these costs may be low now, but assuming NOSTR grows they could grow exponentially - might as well start thinking about reducing them now.

text and images are fundamentally different.  text takes a lot of energy to create but little to store or transfer, thus decentralized redundant approach is right for text.  images are the opposite.  one size does not fit all.

@fiatjaf  
 sorry by "avatar" i meant "thumbnail" ... 

so for any image you save the exact pixel dimensions for example "1200x800" then your hash, then a THUMBNAIL and links to five instances of that image found online.

if any image matches the hash you use that, if not then you use one that matches dimensions, if not then just the thumbnail etc ...

or something like that ...