So it looks like finding a working solution to resizing images on Steemit is next to impossible so I'm providing a fix until Steemit incorporates this into their posting settings.
The old way of using (https://img1.steemit.com) is no longer working.
You must now use :(https://steemitimages.com/widthxheight/) before the url for it to work.
"Width & Height" should be changed to whatever size you want like "300x300".
for example : https://steemitimages.com/300x300/https://steemitimages.com/DQmWGsTsmveXNSQPeTojahAPzJQa1bkAbcB3Xcox7Fzn7sH/walkinggifstick. gif
Like below
Check out this cool walking stickman. Doesn't he look cool?
