You're wrong. Dimensions are processed by your browser, after downloading.
Example:

Now click "View Image" (right mouse button, depending on your browser), and you'll get the real size.

I reported one post from user who is quote whole OP with big image to see what the result will be, and today I see that the report was marked as good and the post was deleted. Although the outcome of each report will depend on the moderator who comes to it first, it seems that some members will learn to use the forum functions correctly only when their posts are deleted.

In your example, yes they would.

But there is not a single reason to convert the image to webp.
If you have a PNG or JPG image, just run the JPG compression (again) with a lower quality factor, and your image gets smaller in size

I don't see any reason for using any other format than PNG for uncompressed and JPG for compressed images.

What you are talking is the resolution of the image, the thing with adjusting the width and height has to do with the quality of the image and the file size, as you adjust it below the normal size you are sacrificing the quality of it to reduce the size load. So I guess what you have said is incorrect, smaller images comes with lesser data than bigger ones.

I think this is why some users prefer to just drop the image link so it will not be bothering as it look when posted in the forum, but also some users are complaining whether they could have just directly posted it.

My answer for this is, don't post an image if it is not necessary. 

Jet Cash
Usually thread authors (OPs) post images for introduction in ANN threads but of course there are other cases too (for example, promotions, statistics, etc).

When someone quotes the same image, it doesn't increase load time data usage but seems to be really boring.

NavI_027
Idea behind this procedures is to resize image in order to get smaller image that as a result is smaller in size (MBs/KBs). And then compress after that to get even smaller in size.

LoyceV
Your picture described everything perfectly:
PNG - Portable Network Graphics
JPG  JPEG - Joint Photographic Experts Group

So, long story short, PNG = higher quality images than JPG but is higher in size too because of this reason.
Advantege of PNG over JPG is that sometimes we need images with transparent background (for example, logos).

Also, I want to mention WEBP since I included it in topic. This new image format was created especially for web. WEBP offers lossless compression of images and higher quality at the same time. Idea behind WEBP was to make load of images faster and efficient.

bob123
Nothing can be compressed without losing quality but this compression allows you to reduce size while making it almost impossible for eye to detect the difference between two.


P.S. There are two benefits of this compression. Less data when using mobile network and less load time of images, as a result faster and better performance on every device. Personally, I prefer to see thread loaded in 3 seconds rather than in 7 seconds.

Well, people have the habit of quoting the posts and then replying them. They do not care if the posts contain the image of not and therefore once a post containing an image is quoted again n again, we have to see the same image in same size again n again. I am sure no one does this intentionally, it is just people do not know how to remove the image from the quoted post or how to shorten the image size or maybe they just don't care.

I never thought that the such posts can be deleted on reporting. I see people quoting the whole ANN thread which contain both the images and lot of text, which is just useless. Same thing is done sometimes on the signature campaign main post being quoted in full which contain everything including the signatures BBcodes 
From today onwards, i will also report such posts.

Modern forum software now auto fetches the last quote, but it's hard to blame the newbies if they are unaware of this.

Besides playing with picture size and dimensions, I would suggest to all bounty hunters delete their posts with reports at least once a year or after campaign distributes rewards. Who needs old reports anyway? Better clean all that bytes of informational garbage.
Anyway if you still need your super necessary intellectual property you can still find it on https://loyce.club/

Actually just minimizing the images to a thumbnail would do the job. But then, we have to wait for Epochy's release just like Half-Life 3.