I would favor a policy against all fair use photos.
That would seriously undermine the quality of Wikipedia as an educational resource...
Yep, we're pretty much stuck with needing "fair use". But there's really no need to get paranoid about it. The description page for each image should list its source, and as long as we have such records we're fine. 90% of the other uses to which Wikipedia data might be put will also qualify for the same fair use provisions, and I don't think it's worth our effort to worry about the other 10% unless and until /we/ produce one of those products.