I've been researching on this but didn't get answers. Is there some way to put together a solidity contract that takes a string and generates an image file for the string based on some logic defined in the contract? I am aware that the image could be stored on the blockchain beforehand and can be retrieved later, but this is not what I am looking for. I understand that solidity doesn't have any image processing functions but still wanted to get some confirmation on whether there is some way to achieve it?

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It is doable using solidity. There are byte arrays and the language is Turing complete so you can create elaborate functions. Although it is not the ideal language for data manipulation.

The problem is executing it under the EVM since running a non-trivial program might be expensive.

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