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Ooooh, good point on the compiling part! I probably should put that in there.

I don't think anyone would rip the game off. I do want to make the graphics available for use too, but trying to figure out the best way to do that. 

Should it be a separate file with all the base64 code? Should it be individual transparent png? One psd file? Not too sure on that either...

If you're using a public repository like GitLab or GitHub, you could create an Assets folder and put all the psd and png images in there. Don't bother about the base64, as that requires an extra step to decode it and it's in the source code anyway.

If you're not using a public repository, you could put the psd files in one zip file and the png files in another zip file and make those available somewhere, such as the downloads on your itch.io game page.

I could make it downloadable from the game.

I was debating base64 so that people wouldn't have to import and convert it themselves in the game. They could just copy and paste the asset and then place it where they wish. However, you're right, it's probably much easier to just have the png and they can place it where they want using their own image editor.