I just found the PhotoSmash plugin yesterday, and it's just perfect for my needs. I was a bit concerned about the fact the project is discontinued, I normally avoid plugins that are not maintained. But it's so very well written, that I decided to take the chance and implement it to a site I'm just finishing. Hopefully it will work with future WP releases for a long time, and if not, the code is very well written an well documented, so my own scills might be enough to fix minor problems.
There's just one little thing I found incorrect; links to PhotoSmash iPhone app in documentation is broken! I eventually found the app at http://itunes.apple.com/us/app/photosmash/id414606616?mt=8 Since I don't have iPhone myself, I couldn't test eather the download or the app itself.
And Byron, I totally understand your reasons for shutting down! And with such talant to write really good plugins and applications that you have, you really should spend the time you can spare from your family and day job writing code instead of answering questions ;)
BTW, I just marked the plugin working with WP3.2 and with a 5 star rating!