Very awkward. I edit the photostream copy and it saves to camera roll as a separate photo from original but put it Pages and it is still full size. I suppose because photostream in a link to camera roll not a seperate file.
Surely Apple can do better but meanwhile we live with the work arounds. Thanks all for suggestions, I have learned a lot to pass along to my iPad classes that I give at the local Senior Center! We Geezers love our iPads too!!