Avatar resizing does not work (or: avatars should be automatically resized)

I'm going to assume 3.0 is affected as well, reproduced on 3.1.

(18:37:51) nx-: The submitted avatar is 882 pixels wide and 271 pixels high. Avatars must be at least 20 pixels wide and 20 pixels high, but no larger than 90 pixels wide and 90 pixels high.
(18:37:58) nx-: Avatar dimensions:
(18:37:58) nx-: Specify the width and height of the avatar, leave blank to attempt automatic verification.
(18:38:00) nx-: left at 0x0
(18:38:01) nx-: so
(18:38:09) nx-: i would expect my avatar to be resized?
(18:38:15) igorw: nx-: I ran into the same problem
(18:38:25) igorw: resizing is hard apparently

Trying to upload a huge image as an avatar.