Yeah, that's likely the best way to do it. Problem is, our image uploads now number in the high hundreds of thousands (not counting thumbnails).
The other problem is, we are short-staffed. So, if I tackle this, it takes me off other projects for 2+ weeks.
It looks like there is a fairly active Rails 3 fork of attachment_fu (what we use): https://github.com/pothoven/attachment_fu