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Did anybody ever get an answer to this? Is it possible to brand the report email itself and set a personalised return email address?

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It just depends on how many images we're talking about. If it's not many, then just do it manually.

If there are loads, use a plugin like the lads have mentioned above.

Doing it manually will give you some good practice on WordPress too.

Upload all new (smaller) images to your media library.

For each large image in the page/post text editor, replace the img src with the smaller image URL, if you leave the larger image as the a href URL, on click, the larger one will show, which shouldn't be a problem.

Page load time should decrease.

If you delete all of the larger images, you must delete/change the a href URL or a 404 error page will appear.