https://steempeak.com/steemdev/@edicted/storing-images-on-the-steem-blockchain
Looks like it already exists and we can get it done pretty easy. The real problem is creating a frontend that displays the pictures properly. It would likely be easier to set up a centralized image hosting service that did the work for you. Even though the display of the image would be centralized, the data to create the images would not be an dozens of these centralized services could be used, making it a lot more decentralized.
You are too smart.