To get users using CB communities, they need to be able to load pics quickly and easily. If they take a photo on an iphone, and it can't be uploaded because the image is too large (ie. greater than the CB install max limit) or it takes 30-60 seconds to upload, they'll stick to sharing on Facebook or Instagram as it's much easier.
In the past, users would upload the pic from their SD card, resize and compress, then upload, and maybe some users do this nowadays or use a phone app to do so. But people generally do whatever's easier and if they've got the choice of:
a) taking a photo, opening it in an app (or downloading one), choosing what size to save it as, resizing then compressing, then saving, then going back to the CB site, opening and then sharing
versus
b) taking a photo, uploading it using on-the-fly compression/resizing
I'd say any given sane user will choose (b).
Facebook, Instagram and Whatsapp use on-the-fly compression using
an algorithm like this
or this
via mobiles
.