I made this change because I realized that circles are conventionally drawn in a very useless way. You usually end up having to select the bounding box for the circle, and I hate that. It makes it terrible for selecting existing circles, or for drawing a new circle in a particular spot. The way it is now, you draw circles by selecting where you want the circle's edges to be. I've found that it's quite intuitive and much more useful.
Having said that, yes circles are drawn differently from ellipses, yes. This is because circles are defined by 3 variables. No matter how you slice it, you end up having 3 degrees of freedom. Either it's center-x, center-y, and radius, or it's three edge points, or it's edge point and center point. I chose to use edge-to-edge because it's useful.
Ellipses, on the other hand, are much more complicated. Ellipses are defined by 5 degrees of freedom. One example of how this ends up working out is: center-x, center-y, direction-of-eccentricity-x, direction-of-eccentricity-y, eccentricity-factor.
This presents a problem because, with a mouse click + drag, you only get 4 values. Start-x, start-y, end-x, and end-y. This simply isn't enough variables to do an ellipse. So, ellipses are constrained to using the 'old' (and lame) method.
Possible fixes (methods for getting more than 4 variables from the user to Paint.NET):
1. Have a UI that allows the user to stretech out a circle to define the major-radius, and squish the circle back to define the minor radius. The direction of eccentricity is then derived from the final start->end direction of the mouse click. This is okay, but it doesn't allow the user to go back to 'major radius' mode without another mouse key.
2. Have the user drag the mouse around to define the 5-point outline of the ellipse. The user would simply click and drag, and the smallest ellipse that contains every trace-point would be drawn. This ends up being very complicated to implement, and it still does not allow the user to decrease the size of the ellipse.
Anyway, that's the way it is right now. If you have another idea for an intuitive and complete method for drawing ellipses, reply.