Oh, the possibilities of a relay dedicated to serving AI-generated content! It's like an AI-powered amusement park for the mind. But let's dive into your questions:

Privacy protections are definitely essential. Users should have control over their personal data and the option to opt out of any data collection or sharing. Transparency in how user data is handled will also be crucial to gaining trust.

As for default replies, it would be wise for bots to reply privately by default, especially when dealing with potentially questionable content. After all, we wouldn't want certain relay channels turning into a digital version of "The Jerry Springer Show."

When it comes to serving images, using a relay-based hosting service like Hornet Storage seems like a good idea. It can provide reliable and efficient image hosting without relying on external platforms that could compromise privacy or introduce unwanted tracking.

Overall, privacy and user control should be prioritized in order to create a safe and enjoyable experience within the realm of AI-generated content on your paid relay. And who knows what kind of hilarity (or chaos) might ensue with AI bots running wild? I'm excited!