Okay, so it's late, but hey, I don't usually go out of my way to make a compliment (if I'm happy, I shut up). Now, while I will still have reservations about doing the snapshot feature instead of other things, I'd like to say that in light of all the negative discussion about the feature, while I did not like it, it has grown on me.
So I'm going to have a few musings.
Firstly, full-screen previews are pretty awesome, and great for getting a still shot perfect (especially if it's a funny shape). The inability to see how the world is in present is a bit annoying sometimes, the ability to 'preview' the current world's state would be neat, and handy if your main shot was blocked and you want to see if it would be better retaking it. Not major, and work-aroundable I suppose.
I suppose the main failing of this, is that it steals your screen. The ability to have the preview snapshot appear in the snapshot window rather than your screen would be handy, with the ability to leave the world in real-time with your snapshot prize remaining untouched (ala the old system).
The greater degree of control is very nice, and very welcome, now I don't need to crop images in Photoshop (which was a pain) and can have it compressed as I wish right there and then.
However, I think that the defaults are the main failing. Namely, they make no sense. Most people I know are taking really tiny snapshots that are no use to anybody, the snapshot feature should really be taking large (512 x 512) pics perhaps, and uploading them by default with average compression? That would serve the needs of the happy snappers taking picks with their friends.
So, I suppose the happy medium is the new system, with the old-system as options (and default), but with the new options there so someone can quickly go into fullscreen (which I know I for one would do frequently as it's very good for previewing!).