I would also like to see the return of this feature sometime in the future...
It's actually the main reason why I started my own image host.
UltraIMG was initially only meant to be for me, because I was using the image resize feature a lot when I was hosting images on eBay.
But then I decided to open it up to the public and it's just continued to grow.
I've had several emails since I updated yesterday saying that the feature is missing, and that they also used it.
All we can do is submit this request and hope to see it return sometime in the future.