The WP:FAIRUSE pages says
Wikipedia's goal is to be a free content encyclopedia, with free content defined as content that does not bear copyright restrictions on the right to redistribute, study, modify and improve, or otherwise use works for any purpose in any medium, even commercially. But because free as in cost and free as in freedom are two entirely different concepts, images freely available on the Internet may still be inappropriate for Wikipedia. Any content not satisfying criteria, such as 'non-commercial use only' images, images with permission for use on Wikipedia only, or images fully copyrighted are therefore classified as non-free.
The Licensing policy of the Wikimedia Foundation requires ALL content hosted on Wikipedia to be free content. BUT THERE ARE EXCEPTIONS. The policy allows projects to adopt an exemption doctrine policy allowing the use of non-free content within strictly defined limitations. There are situations where acquiring a freely licensed image for a particular subject may not be possible; non-free content can be used on Wikipedia in these cases, but only within the doctrine of fair use. The use of non-free images on Wikipedia must fall within purposely stricter standards than defined by copyright law as defined by our non-free content criteria as described below.
The ideal solution would be deleting all fair-use content, just to be sure and to be safe from legal problems. If wikipedia is supposed to be distributed in DVDs at some point, it would be impossible to include all that copyrighted material in them due to legal concerns anyway.
Obviously, someone came up with a Mini-rpg project which requires people to reduce the resolution of said fair use images and use tags on them etc etc. and then, they will be deleted later. So to reach one basic goal, you have to go through three steps.
Fair use -> reduce image -> check tag -> delete anyway (when?),
Fair use detected -> delete because non-free and contrary to the principles of the project.
And why would anyone need a low quality image of 160x120 pixel in resolution or a music sample played at 8 khz, since G0g0le Yah00 and the other engines offer to find an equivalent image which is a lot higher in resolution?
And it is also arguable that MANY pages which exist today on that site are an evolution of text which exists on a copyrighted book, and said text is probably still present in the history of a given page.