I don't get that option in the "Mail" App or when I try to send via the "Photos" App. I don't see that screen or option.
I'm using an iPad1 - not an iPad2 could this be why?
The iPad is definitely shrinking images within its Photo App. I placed another picture in there via Dropbox, navigated to my iPad via Windows XP, copied the image and pasted it onto my desktop and its under 200kb again.