I've changed the limit for image files. The new max sizes are:
Max Filesize: 6MB
Max Width: 5000px
Max Height: 5000px
If they exceed 1200px either width or height they will be scaled down server side. You do not need to resize large images anymore as I'll do it for you. Those limits should accommodate most images from standard and even pro DSLR cameras. Those images have very little compression and in most cases are really pointless as even a 1200PX image is much larger than the monitor resolution a lot of people are using.
If in the event you need to upload a larger image you can place them in a zip file and upload that.
I've also added a nice little table on the upload panel that list the types of files you can upload here and the limits for each.