That just sounded like a really "I'm tired of webmasters asking for everything" type response. Those people/sponsors need to step away from their keyboard and come back later when they are less burned out and realize that a legitimate question requires a thoughtful response.
If your affiliates can not use the content you provide and you refuse to assist them, and you can't see the point of making it right, it won't be long before you're like a fish on a beach gasping for air...
I would agree that webmasters have gotten spoiled and really don't put the effort into doing good work, but here you have a webmaster this IS willing and wants to do a good job and the sponsor says "I can't please everyone?" He should send you the pics out bigger. You can't make a bigger jpg from a smaller one b/c of the compression issues. It will look like crap.
I'd move on to another sponsor... there are plenty that are willing to do what it takes to make you both profit from your work.
I guess I could have said all that with a simple /agreed but I had to rant my 2 cents LOLOL
and not that this has anything to with anything.. but this is my "69th" post... 69 is such a great number