Well, I've been into doing graphics an stuff... like icons for LJ and AIM an other things. And well... the animated ones never fit on LJ because it has the 40K limit, and I have to shorten them alot (usually), and they just aren't what I want them to be.
So yeah... I think they should get rid of the file size limit for the LJ pictures, or at least bump it up a little bit (like 150K is usually the average for animated icons I've noticed). Especially if you have a paid account.
Cos for those of us that don't (and won't) use the phone posts (like me), what is the point of the 50 MB if we can't use it?