Okay. The "I See People" thing I don't know or use. I'm a member. I'm not a premium member so this does not affect me nor can I comment on that part of your argument that you've brought up a couple times now. I wish I could but, I can't. Justin may very well have his own reasons... but I don't get them.
Uploads were limited then to 40x40, and I talked to Justin a great deal about the possibility of larger avatars. His conclusion was that it would just not work with the "I See People" feature.
That's the history of it that I know.