MC makes extensive use of thumbnails built from Cover Art, which are used in the Views and popup info windows, etc. I haven't used iTunes in so long I can't remember if it only stored thumbnails, or stored full sized Cover Art as well as thumbnails. The 200x200 sized art is probably the thumbnail art from iTunes, stored inside the media (Audio) files. ther emay have been large Cover Art files stored somewhere by iTunes.
Anyway, future media files that you import into MC will probably get large Cover Art files associated with them, if they haven't been used in iTunes beforehand. For example, ripped CDs typically get 500x500 to 600x600 pixel Cover Art assigned, but you can actually separately source and add any sized Cover Art files to your media files that you wish, and either store them inside the files or externally.
I store Cover Art inside the media file when I can, which is possible for all my audio files. See settings at "Options > File Location > Cover Art"
Also read the Wiki:
https://wiki.jriver.com/index.php/Cover_ArtIf you want to update your media files with better Cover Art, you can select the media files you want to update, or the Album thumbnail in the Audio > Album view, then right-click on a selected item, chose "Cover Art > Get from internet". Do a few to see how it works. You can do a whole lot at once if you wish though, but be prepared to get some strange results if you just trust MC to find the correct art every time.
Note also that I don't think a change of Cover Art can be undone, in that the image stored in the media file is replaced, or if the image is stored separately it will be overwritten. So you may wish to back up your media files and any external Cover Art files before doing mass updates.
Enjoy!