You know, I never considered the resizing a problem cause I only put the photos on their to share on the web, so smaller is better. I save all my photos on my hard drive and CD-R disks.
They still have the check box to add a print quality photo. I actually have my albums on an msn community site. I don't know if it is different on the photos site. I also use their upload utility, so don't know if that is different.