Two hundred kilobytes is 1,638,400 bits. A 1920 x 1080 image (about 2.07 million pixels) gets roughly 0.79 bits per pixel, and a 1600 x 1200 image about 0.85. That is enough for full-width web images and product photos where people expect reasonable detail, and it is a common upper limit on forms that accept larger photos.
A 12-megapixel phone photo at full size would still only get about 0.14 bits per pixel, so very large originals are reduced in size as part of the process.