Just an update on this. Admin has tried the auto-resizing function before and just tried it again, and it doesn't work in the forum - so it's not an option for YT. As far as placing pics inside the post itself, it can be/get very, very messy and clunky. For example, there is no control of the different widths of these pics - so you can insert a wide pic, and then the text goes allllll the way across the same width as the picture, making it very clunky to read. Also when inserting pics, many of those links die off/expire, so then you're later left w/ a bunch of red "X's" where there was once a picture. So, to keep the forum easily readable and clean looking, Admin always elects to keep it simple and consistent looking by using the thumbnail option.
This sizer may be one that you like:
Free Online Picture Resizer - Crop and Resize photos, images, or pictures online for FREE!
See the screen snap I attached? Look to the very bottom where it says "Max File Size" -- that's where you could put "199" for the max size and it would make it good for YT
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