@diva
I think i'll take this chance to say that none of what I say is meant as criticism for IH. It has been one of the first mods that I have installed on sites over the last few years. The fact that some people find the install and upgrade complex is more due to the structure of Zen than the module. Even as a supporter of Zen it is hard not to yearn for modules that reside in their own directory and can be installed and upgraded at the click of a button, but hey, we know why that isn't possible as it stands and also know that the developers are aware of this.
I probably wouldn't have thought about any of this if it hadn't been for the issues with IH and Zen 1.5. But having thought about it I still think that the model based on 'resize on upload' works better for a store that is up and running. It just uses a small bit of processing resources during upload but after that is much more efficient.
Having thought more about development I think that during development I am happy not to use any image handling at all. The browser will rescale just fine for me to play with layout options ( exactly as it does with no module installed ) and I don't care about the performance penalty during development.
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