Well, Ballmer's gone. So maybe they will figure out how to pull together their innovation. It is kind of deflating sometimes to realize that MS was doing something that they simply dropped the ball on. The smart phone is solidly one of those things. They dominated the PDA market prior to the iPhone coming out. All they had to do was put some focus towards it.
I remember it used to seriously limit the resolution of the pictures though. You'd stitch together lots of high-res photos and yet the app would merge them into a low-res output. I wonder if they ever changed that?
If I remember correctly, that only occurred if the panorama was extremely wide or extremely tall in aspect ratio. I think it had a limit for the maximum dimension. But I remember exporting approximately 4:3 panoramas that were quite large.
A nice reminder that Microsoft really does have some great engineering talent and they can break new ground.