Google provides an excellent way to resize images dynamically; simply append =sXX to the image URL. This is perfect if you want to shrink an image, but if the image is smaller than the size specified, it enlarges it, giving it a pixelated effect.
Is there an easy way to say "don't enlarge, only shrink" when using serving URLs with a specified size?
UPDATE
This functionality is now a feature request at GAE. Vote it up if you'd like to see it!