What goes around comes around. I agree that bad photos will occasionally hide real bargains, but as a seller, I'm not really interested in attracting the bottom feeders and bargain hunters. As a buyer, I want to be able to make a reasonable guess as to what it is and its condition before spending several dollars for gas to drive somewhere to see it.
I spend a little time on the photographs, making sure they accurately depict the item, and then give it a good description. The extra half hour is worthwhile.
I bought an old Hardrock MTB that had been sitting outside for the last 15 years. Fortunately, here in the desert, that's not terminal; there was very little rust. It was just a small cell phone shot, and the description was pretty depressing but honest, and that probably scared people away. I bought it for $10.00. I put a pair of used tires on it, a used seat, replaced cables, got everything working, cleaned and polished everything, and sold it for $175.00 to the first person that responded. Total out-of-pocket was less than $30.00.
There are a couple lessons here, but if I had used the same quality photo the original owner used, I'm sure it wouldn't have sold at all. The thought of a 20-year old entry level mountain bike selling for that much is contrary to the opinions of value most of us 'regulars' hold for a bike like that. (I was prepared to go as low as $100.00.)
BTW, I use Photoshop, but only to improve the overall quality of the photo. I don't edit out any defects, but do try to make the photo 'pop' a little.