I don't think that necessarily looks fake. I've bought things before and had a bad feeling but couldn't help myself because it was such a good deal! And most of the time in those cases, the item I've received has been authentic. Some sellers are inexperienced and just don't realise the importance of clear photos - or they're lazy. I'd rather give my business to a great seller who communicates, but if I'm getting a steal, I can sacrifice that!
As for fakes having cloth tags in general, though - it wouldn't surprise me. As another poster said, when something changes at LV, the counterfeiters are hot on the trail, unfortunately. I imagine most fakes are still branded 'made in France' (which of course, they really are not) because that's what people who buy fakes want - for it to look like the real thing, and largely, people want LV to be French made. I would guess that a great number of people who buy fakes/people who don't buy real LV at all might not even know that it's made outside of France.