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If you have not yet done so, you should update your trac record with your findings.

Also, it does appear that in a future version of this component file, the avatar size limits will be configurable by the admin. In bp-core-avatars.php, see the TODO comment:

/* Define settings for avatars. [TODO] This will eventually end up as admin configurable settings */

define( 'CORE_AVATAR_V1_W', apply_filters( 'bp_core_avatar_v1_w', 50 ) );

define( 'CORE_AVATAR_V1_H', apply_filters( 'bp_core_avatar_v1_h', 50 ) );

define( 'CORE_AVATAR_V2_W', apply_filters( 'bp_core_avatar_v2_w', 150 ) );

define( 'CORE_AVATAR_V2_H', apply_filters( 'bp_core_avatar_v2_h', 150 ) );