Which begs the question: What the hell was reddit doing that they didn't immediately implement an image hosting feature to keep users on the platform? Imgur rose to fame because it was the darling image host of reddit users, and it wasn't long before imgur needed to pay hosting costs and started sucking users away from reddit and into their own "imgurian" sharing hub.
I guess the internet back then was still in the "Open effort to make the internet awesome for everyone" phase, and hadn't yet gotten to the adversarial "Capture users and never let them leave" phase.
That quickly flipped, as /r/NSFW became the most popular subreddit. You could avoid it by browsing as a guest or by curating your feed, but porn was everywhere.
Early Reddit also had a strong attitude about minimal moderation. The early days were characterized by a feeling that anything goes as long as it wasn’t illegal or too extreme to defend. Combined with the popularity of porn on the website it created strange situations where a lot of subreddits were focused on things like legal-enough photos of underage children. There were also a lot of weird alt-right and white supremacist forums. There was an unofficial (if I recall correctly) “Subreddit of the Day” that attracted controversy because it actually highlighted one of the “jailbait” subreddits and even a white supremacist subreddit.
So if you were there at the time, it was obvious why Reddit wasn’t going to host their own images: It would have been a legal nightmare with all of the porn (copyrighted material), the creepy underage stuff, and white supremacist memes
Reddit did a decent job of containing this stuff out of view of the average user and later removing it from the site. It took many years.
If you peeked at /r/all or browsed new during the early days it would have been clear why image hosting would have been out of the question at the time.
Q: Wouldn't most of us want to defend the right to publish content that's "not illegal"?
I don’t want to host that content, though. That’s also my right.
As I discovered on the early days on Reddit, I don’t even want to be on a site where content is a free-for-all because you could go from scrolling through programming topics to encountering sexualized imagery of minors by scrolling if you weren’t careful.
This is the problem with every hardcore free speech platform: They attract the people who only come to post that content, while everyone else who doesn’t want to see it starts leaving. Then after some time, the majority of your content is catering to those niches.
(Neutral example: at some point in the past the clinics around me started requiring appointments to come in for doctor-prescribed tests. Recently, the closest one did that too, saying that they were the only one remaining and ended up being overloaded with all the people who wouldn’t or couldn’t make an appointment. And thus we’re all worse off now.)
My view of free speech is simply: the government shouldn't arrest you for publishing most things (with only certain mostly-well-defined exceptions). If there are views which are not illegal but which no platform will let you publish, I really don't see the problem. If enough people share those views they can get together and make their own platform. It's not even hard to make a platform anymore, anyone can buy a domain and set up nginx on a raspberry pi.
Freedom from government persecution on the basis of speech is extremely important to me (again, with exceptions). Freedom to publish unsavoury-but-legal content on other people's platforms is completely unimportant to me.