Well, it works on other non-stock ROMs, so it is an assumption that the fault is with MIUI. But I will query it with the HaxSync developer anyway and get back to this thread with a more detailed description.
In System Settings > Language & input one can enable /disable the magnifier.
But this setting does more than the title implies: when magnifier is enabled, there is no draggable cursor to show the current position in a piece of input text. That is only there if the magnifier is disabled...
Yes, the point is each of us will have a slightly different situation. But we do not want to be forced to use a specific provider for syncing our images, especially if it already works on other ROMs. It needs to be fixed instead of work-arounds being thrown down our throats.
I'm using HaxSync to pull in high res images for my contacts from Facebook. This worked 100% on my Galaxy II stock ROM, and also on CM9, but in MIUI it is pulling in small images. So sorry, Xiaomi Sync is not a solution.