Big deal. Everyone and their uncle's news site would have pictures posted if they had them. Fox is no different from any other news source in that respect. Why do you care if they put up the picture? Why would that degrade the victims?
Same reason other graphic footage isn't shown. It isn't considered acceptable to show people with limbs ripped off, on fire, etc. There isn't a good, specific explanation--it's simply considered poor taste. It's uncomfortable to see that kind of suffering up close and personal.
As pilots we're especially aware of what those onboard must have experienced. To see photos of an aircraft with a wing separated in flight, it makes it a little "too real." We know what it's like to be on an aircraft like that, carrying a family like that. We don't need pictures to remind us.
The thing is, to the general public, they don't see it from the same perspective. To most people, unless they see shots of specific humans suffering, it isn't graphic, it's just like a movie. All they see are chunks of metal in the sky. They don't connect with the photos on the same level as a pilot.
EDIT: Putting up the pictures is a good thing in my mind. It really hits it home with people like you and me who expect to fly and makes us all that more emotionally pushed to stay extra vigilant on the job. It also makes people more empathic towards those effected. Seeing it induces more emotion than hearing.
Fair enough. Those are all valid points for an editor to consider.
I don't have a strong feeling one way or the other. Had I been the news editor, I probably would have run with the photos. But it would have been a tough call to make and I would certainly understand if it offends some people, particularly pilots. News editors can't keep everyone happy all the time.