Is there any reason why small images don't have thumbnails?

Are we talking about the same thing? The black bar that pops up when mousing over an image that’s smaller than its actual size (it doesn’t pop up if the displayed image equals the uploaded size)? If so, can you explain how that’s a bad thing? I’m not seeing how adding a black bar to an inappropriate image would make the black bar itself inappropriate, and I imagine the expansion itself is fine because it has to be manually expanded by the user.

I can definitely understand why that image would be unwanted, but I fail to see how it relates to expansion – this is a community problem which is resolved via community flags. The expansion option itself on such an image doesn’t negatively impact the community at all.

I would think it would be more appropriate to generate thumbnail by display size instead of uploaded size. Say I display a larger image as an emote right now:

It gets the expansion option, which doesn’t make a whole lot of sense. If instead of choosing to create a thumbnail by uploaded size, it did so based on the largest size (between width and height) of the displayed image, emotes wouldn’t be given thumbnails.