As a frequent uploader to CD-Media, I tend to run afoul of the 750 kb size limit with a bit of regularity. I’ve fiddled in iPhoto to get settings that seem to work for getting the right size, but at the expense of the image size (which has its advantages for folks trying to use them down the road).
This leads me to wondering: Is there a way to have CD-Media accept larger images (5 MB would cover most point-and-shoots, 10 would get everything this side of Dave’s gigapans) and letting the server figure out the largest an image can be and fit under the magic 750k figure? The original could then be discarded or kept, depending on how likely one figures that bandwidth will get cheaper (or image quality needs particularly higher) over time.