Most Fediverse software supports image uploads, so there’s no reason to use Imgur for image hosting. Hell, even on my small single-user server (atomicpoet.org), image hosting is easy peasy. Not only is Imgur not needed, they’re an annoyance for those of us who are used to seeing images natively on the Fediverse.
I know habits are hard to break, but just remember: this isn’t Reddit 🙂
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.