Yep! My sims rarely make children that wouldn't turn people into stone when looked upon by outside eyes, so I'm milking Stevie and Sonya for all they're worth.
You definitely should continue to do that milking! They are adorable!!
If your game has much clearer graphics than your pics. you might try a program like Fraps. Then look to crop you pictures as much as you can before you do any resizing. Also you should check how much you are compressing your pics to make sure you are only squishing them as much as necessary.