I presume you are talking about photos and not graphs/diagrams which will get a bit mucked up by the way jpeg compression is handled. Compression is unavoidable - 42000 images and counting, multiplied by 6+ versions of each and even more tiled versions than that takes up a hell of a lot of space. Try compressing your photos before uploading (jpeg quality level we use is about 85
IIRC). Read up on the artifacts here:
http://en.wikipedia.org/wiki/JPEG#Effects_of_JPEG_compression and change your photography style accordingly. Also, bare in mind the default sizes of the image - if you are cropping to a strange resolution then it might make it look a bit odd when it resizes it to 800 pixels wide. Try to keep your images to multiples of 200 pixels in width and they will scale nicely.
Compression/re-encoding is also performed to remove any hidden data from images - they are easily used to spread viruses or hidden info, and re-encoding them strips out any extra information that might be hidden in them.