is there any mileage in incorporating timthumb in to the re-worked Image Handler?
On the downside it's externally maintained code, but you *could* say that about PHP or jquery.
On the plus side it does the image resizing on the fly and could feasibly be dropped in to the zen_image function. It also has a crop function for when you absolutely need your images square.
I'm working with it now for a site where I need to resize the attribute images.
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