Image resizer dynamic image some smaller size gets blury

Hello i have been making admin panels where my clients can upload their product pictures but some times they have a small image some times they have them super big, the upload script in data assist i have it to resize pictures to 700x700 pixels, this to implement a shadow box popup, i have set the thumbnails to be shown at 250 pixel width empty height and apply on them IR, my client uploaded some pictures 128x128 pixels on the thumbnail where IR is apply the pictures where stretched and i did not have selected the "Resize image smaller than specified dimensions", this makes the pictures look pretty bad, my question is why do we have the option to tell it not to resize if the pictures are smaller and it keeps doing it, how can i prevent this from happening i can not tell my clients hey u cant upload smaller pictures, i remember ADDT and sorry to mention it lol but they had a pretty nice thumbnail resizer that it do not resize if the picture was smaller than the specified size and never steched them like this.

So what to do now? should i just use the resize option on DFP2 and lose the money on IR or will there be any solution soon?

It seem the IR is only good when pictures are bigger than the size you need to fit on smaller pictures it becomes a real mess and this limites the use of dynamic pictures