I do not believe pictures are necessary [for most things]. "I have a Keyless entry module, PN: xxxxxAE020" or "5x100 Gold BBS's, new Continental Tires, $1200". For something less usual, a link to the manufacturers website should suffice.
Photos would be very useful when dealing with unusual items or parts subject to wear, but not that's up to the seller.
In the end, I believe photos shall be strongly encouraged but not mandatory.
Caution must be maintained when trying to mandate more specific contact information as to not contravene those FOIP laws. However, I agree that a basic location shall be mandatory.
I think the current FS thread functions quite well 90% of the time. Sure, there will be someone posting "I'm thinking about selling this one shiny dull bit in my car, anyone interested? PM me with an offer".