WP 3.9 Image Size

I’ve recently upgraded to WP 3.9 and noticed a change in behavior regarding Media Upload/Resize. I’ve read a couple of the threads that exists on this topic such as http://wordpress.org/support/topic/major-problems-with-image-editing-in-wp-39 and I understand but don’t agree with all the changes.

The issue that I’m having specifically is how the resizing now works. After inserting an image into a post (full size), I click on the “pencil” icon to edit the original size (1201×501) to (300×78) and I click on the update button. I can see the image has been resized in draft mode, which is what I’m expecting. I then go to preview the post which will indicate what I would see in the final post and the size of the image has not changed and is fully expanded. I look at the HTML and I can see that it specifies width/height of what I had provided yet the display of the image is the full size.

This behavior seems to be different and to me this seems like a bug, unless I’m missing something?

Is there anyway we could get back the small/medium/large settings when uploading media? That was a really handy feature that I really like and I did not have to worry about manually resizing my images