Why does iTunes use an iPod Photo Cache at all?

Hi,
When iTunes is used to synchronize photos to a device, it creates an "iPod Photo Cache" folder.  Why does this folder even exist?
For users that have multiple devices with multiple resolutions (e.g., iPad 3rd Generation, iPad Mini, iPhone 4S, iPhone 3G), the iPod Photo Cache is grow to approximately four times the original size of the photo.  If I have 15 GBs of photos and a 250 GB hard drive, then the combined usage of 75 GBs (15 GB photos + 60 GB cache) is extremely unreasonble.
Device resolutions change often enough (these days) such that having multiple devices is probably more common than having more than one of a single product.  iTunes should be designed to do the real-time conversion (which it already does), but not save it to the hard drive.
Also allowing the ability to change the location of the "iPod Photo Cache" folder would help many users, but not myself since I do not have an external drive.
Any help is appreciated.
Thanks.

Thank you for your response. I should have clarified. When trying to delete from the library, it gives me the option to delete them from the computer or just from the library. I choose not to delete them from the computer, just the library. As a result, I would not expect the deletions to free up room on the hard drive, but I don't see how it actually increases the space used up on the hard drive. If I delete a song from the library, but not the computer, does iTunes save the song again someplace else (such that there are now two copies of the song somewhere on the system)? That seems to be the only explanation for why the free space on my hard drive would decrease after deleting a song from the library.
  Windows XP Pro  

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