John and I did some digging, and discovered we're not the only ones to notice this issue, but so far we've seen no official comment or explanation from Blogger. From what we've read, the problem began within the past month or two, so it's possible a lot of bloggers simply haven't noticed yet.
Just to show you how bad it is, take a look at this photo I uploaded today:
Now look at the exact same photo, in the same size, only hosted on Flickr:
It's like seeing through a new pair of glasses, huh?
Unfortunately, this is just the latest in a growing pile of problems with Blogger of late, and I'm sad to say I can no longer recommend the platform in good conscience. It's been one frustration after another here the past several months, and we've been working hard to find a long term solution (news on that coming soon, I hope).
In the meantime, I'll probably be hosting all of my Epbot photos on Flickr from now on. It's an additional step and a real pain (I just spent two hours re-uploading an entire photo post - arrrgg), but when you've worked so hard at making your pictures look pretty, dang it, you want it to show!
Now I can only hope that you all can see Flickr photos, since I know some workplaces have those servers blocked. Let me know in the comments if you can't see the second photo, won't you?
[UPDATE] - Sarah in the comments just offered an excellent suggestion: if you convert all of your photos to .pngs before uploading them, the loss in quality is reduced. We just tested it out ourselves, and did see an improvement - although nothing nearly as impressive as the Flickr-hosted photo. Still, it's a good option for anyone still wanting to use Blogger's hosting. Thanks, Sarah!