Okay, it looks like it might work; I managed to upload a 2.2MB image just now. Try it?
There are two elements to it, one is a limit imposed by our code, the other is imposed by the server itself. Our limit was 2,000,000 bytes, to keep you away from what was a hard (and impressively badly-handled by my code) 2MB limit. It looks like moving to a new server has given us a higher server-imposed limit (though I don't know what yet), so I was able to up our limit to 2,500,000 bytes.
Note that the higher end of that is untested: even with a 2048x2048 image at 100% I could only get 2,333,154.
We're not going to take the brakes off completely and start eating monstrous files. Disk space is a concern, even if bandwidth isn't any more.
My friend and I applied for airline jobs in Australia, but they didn't Qantas.