But you need to consider that so have hosting costs-- proportionately too. Hosting data was incredibly expensive 10 years ago. If the math was working then, it should at least be pretty close to working now.
Image file sizes increasing dramatically as smartphones started producing photo sizes that would have been considered massive 15 years ago, saturated much of the gains in cost to hardware.
It's easier to run a one-click image host (like the early Imgur) as a solo operator today versus back then. It's not much cheaper when you account for the larger image files (unless you severely limit the file size, which won't be a popular choice with users, most of which just blast four billion smartphone photos, don't think much about image sizes, and want to upload them as is without thinking about any of that).