I recall reading some posts on the CL help forums, people wondering why their ads got flagged. Of course the first question was "show us the ad", and the answer was something like "WOW! I'd flag that too!
Most people think a photo is a photo is a photo, and that "bigger is better", but, as in many other things, it is not always so. A properly edited photo will be a much smaller file size, and much faster to load, than will a raw shot. When a slow loading 6 MB photo(or a half dozen of them) is inserted into an ad(taking a coons age to load), when the same photo edited to be a smaller file size(You can easily make a 5MB photo into a 100KB, fast loading, photo with no loss of clarity) allows the page to load quickly.
As the CL staff would point out, the flag option is one of the first things to appear on the page, and if people get impatient waiting for an over bloated bunch of photos to load(which most will do), they'll click that flag and be gone
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