Tor is good option who want to be completely safe but as you mentioned that it will take 3-5 years and also costly then I think so far I am satisfied without Tor.
Any other competitive image hosting site working well in the tor browser?
The implementation would not last 3 years! The timeline for the project only foresees this upgrade in 3 to 5 years.
Regarding other image hosting services, which deal well with Tor, I don't know how to answer. What I know is that it will be difficult for this type of service to operate at the same time, as a single website, on clearnet and onion.
You can not satisfy all members and I know your image uploading service is created as an alternative for Imgur.com. That website disallowed uploading images from Tor along time ago but people still used it until their latest serious change against proxy from Bitcointalk months ago.
I think if I am serious about my privacy, avoid or reduce uploading images from third party websites is my best choice.
For your next upgrade to serve Tor using demand, because of high cost, I believe you can only deploy it if you receive more donation from community. It is not about benefit for your service operation but I don't think it makes sense to host it with more expensive cost just to satisfy minority with Tor-using demand.
By chance, it wasn't exactly because of Imgur.com that I created the project. But the starting moment ended up being mayor.
I am grateful for the support I have received, and this only gives me the strength to continue and continue to seek to improve the service in order to please all users. Although this is not always easy.
Not everyone trusts their IP addresses with a third-party website like this. Op claimed he doesn't save logs, but how can we be sure if the project is closed-source? It is better to be safe than sorry.
In fact, the only record that exists is the IP, for image moderation reasons. But, nothing that a VPN can't solve.
But, maybe I can still change this type of moderation.
I appreciate your feedback, it only helps me improve!