I know that you're supposed to have a 'good balance' of written content and images, but how does google decide on that? Do they look at dimensions and file size? Does anyone know if it's or bad to have them close to the top?
Well, a balanced proportion of images and content delivers best users experience and Google love those sites which deliver good experience to its users. Images are important part of content but do not load your page with images only as it may impact your page loading speed. I don't think google takes image size into consideration unless it is influencing the page loading speed.