does the green resize button in the corner of windows resize them normally now?
No, but there are a lot of tools that will help you do that. The most lightweight and non-intrusive tool I've used that does this is SizeWell, which is free. Set the default behavior for the zoom button to do a full screen resize. The other nice plus is it lets you enable to disable Lion's zooming animation, which is a little jagged on bigger screens.