If you haven't noticed, when you email pictures using iPhone, they are downsized by about 80 percent. At first I thought this was just to save bandwidth on 3G, but they are also downsized when using WiFi. This is really annoying IMO. Is there an app that keeps the pictures from being downgraded in quality?

You're right, it downsizes the photos from 1600x1200 to 800x600: half the width and height, so a quarter of the number of pixels.

Attach the photos to your email using programs like iFile (from Cydia Store; maybe a less expensive alternative exists) to avoid this.

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iPhone 3GS / 3.1.2 JB (PwnageTool) / 04.26.08 carrier-locked, Carrier Logo Fixer / Cydia / 1000 posts on Hackint0sh

Installing Cydia programs on a phone that has no internet connection: read this.

Editing binary .plist, .strings, .nib and .xib files:
* on your computer: Windows tool / conversion website.
* on your iPhone: convert those files in a terminal with plutil (installed with Erica Utilities) or edit them with iFile (Cydia links).

or even simpler, just copy the photo and paste it in the mail.
they stay original size by that.

How To: Email Full Size iPhone 3GS Photos via Copy/Paste | The iPhone Blog

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Sunrise, 1.1.4