Out of frustration, and resorting to running v1.7 to keep this working-which nags me to update all the time, I returned the Post Thumbnail sections into the v1.9 code. Works as expected, so I'm evidently not grokking why it was taken out. I'm not seeing a conflict, here, between the two.
"Featured Image" and "Post Thumbnail" terms have been confused with one another, and now "Featured Image" and "Header Image" are suffering the same fate. The devs need to step back and look at this from the user's perspective and standardize their terminology. To me, a Featured Image has always been a small thumbnail in each excerpt on the front page, that can be floated left and the copy run around it.
I'll delve into the above approach and perhaps add it to my theme but it is targeting a 1000px header image. All I need is a 133x133 max sized (not cropped) image that is separate from the other three image sizes. I think I see a way to modify the above code to have both a header image and a post thumbnail, but it will require testing to see if it works.
I loaded TwentyEleven to see where this function shows up in the admin panels and do not find where the header can be sized. They let you crop and "suggest" 1000px x 288px but there is no sizing function that I can find. Great, if you want to follow the panorama style of TwentyTen, TwentyEleven and TwentyTwelve.
Edit: Just found Simple Image Sizes that not only gets the Post Thumbnail back but adds the Small that I had set in functions.php a long time ago. Reverted back to the un-edited v1.9 and it all looks good.