I think it would be a great idea to add a 3rd option for resources in the library. Rather than using the built-in search or upload, to also add the option for a direct link. Maybe still has to link to a JPG or whatever your approved list was again, but it'd be great for me.
I could just go to a favored image site, I dunno, imgur or photobucket or something, upload a bazillion pictures, and then link them, without bogging down my limited space on Roll20. And my players could pick their avatars more easily - they could find a favored picture and just use the link.
Really hoping this gets implemented, or any sort of easy-to-use way to use stuff online!