For some reason, this was not happening. When you view the picture library with the default view, all the pictures were showing a blank image (since they use the thumbnail version).
Reaching out to Microsoft Support, it turns out that for these libraries, the parent SPWeb had the ParserEnabled property set to false.
The MSDN description of the SPWeb.ParserEnabled Property is quite useless.
Fortunately, I found a blog discussing this: http://neels-indites.blogspot.ca/2012/06/sharepoint-spweb-property-parserenabled.html. According to this blog, having ParserEnabled=false will cause the following:
- Cannot search in document library using Office document properties
- When you upload an image file, the thumbnail and websize images will not be generated
- When you save a list template, you will not see it in the list template gallery.