[scrumper]

You can turn on iCloud Photo Library (Beta) which does pretty much exactly this - keeps low-res images on the phone and keeps the high res original in iCloud. (Since it's an Apple cloud-based storage product I don't trust it completely, so I also have Dropbox Photo Sync).

Don't really understand what the Steve Jobs email is doing in there either.

[baldfat]

Why don't you use Google+ photos? It really is the best thing ever and your photos never count against your storage.

You get unlimited photos backup on you can just delete any photos on your phone and just look them up on Google+ which has the best photo search ever and also has albums, edit and folders.

[jeremyswank]

does it have an option not to make the photos public?

[yellowbkpk]

The default is to not make your photos public.