You could always run a resize on the rotated image if you test the image size and it is too big, hopefully it will still be of a decent enough standard after resizing. The latest version of the extension provides a method for getting the filesize/dimensions, and for cropping.
one suggestion:
replace "file://" with "" in target and output in the extension source code, then the user no need to substring any more.
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Yes, I keep meaning to do this 
Will fix it today !!
[EDIT] now fixed.