A larger resolution on the pictures would be awesome, but if you do some math – hundred pics per user, roughly 15 million users. That quickly nets you 150 million jpegs to juggle. So it figures that the smaller res is to ease the whole process.
I'm a photographer, so for me the camera lacks a few things that would elevate the whole thing to another level but hey, it's better than nothing. Or the non-functioning functioning camera in IV where you couldn't save any of the shots.
The 96 image cap is agonizingly small (for me) tho. I've started to just download all the shots on my comp and then clearing all of em out the Gallery. Rinse and repeat.
Slightly off-topic, here's a collage of GTAV shots I've taken:
It's pretty remarkable that (at least in that small resolution) some of em look like real pictures if you just glance over em. That lighting system is quite likely the finest I've seen in any game.