Yes the script is just doing its job... it can only do what its told.
With that in mind, maybe a exception or something like that could be added to the script since 2 of the the major browsers treat it this way... What i was wondering is that what if an extra file "translation" of EXIF was added to the accepted web images? that way when the browsers dont translate JPG from a camera correctly as JPG, they would still be accepted.
The whole reason they are not accepted is b/c the browsers do not see them as JPG's, even though they are. Adding this "exception" would fix this issue and working with browsers different 'quirks' is all part of web design. i dont know how many times ive made certain exceptions for styles b/c a browser acts a certain way... this is no different.
I know it can be done i just dont have the expertise... maybe something with an PHP if statement or exception for certain browsers. I'm not sure, im not a coder... thats why i bought DFP. You guys are the smart ones when it comes to that... what can you do? :)