There have been many complaints about how resizing and rotating happens on widget handles. Hopefully most of those should be assuaged with the last few commits I’ve made.
Here’s what you used to get if you rotated an widget, moved off the widget (so the handles disappeared) and hovered over it again:

You’ll notice that the handle isn’t rotated, even though the widget is. Also, you’re expected to resize and rotate with a single button (which is the rotate symbol, despite the fact that you’re much more likely to want to resize than rotate the widget). There were also odd quirks with rotating where it would jump about when you released the mouse button or moved off the widget; and if you rotated it, released the mouse button then started rotating again (without leaving the widget), the widget would jump back to its “unrotated” state and start from there.
Well, now all that’s fixed:

There’s a separate resize button (it still maintains aspect ratio by default, because most widgets have an “ideal” ratio that they start with, but you can freely resize it with CTRL). The rotate button works as expected. And the handle starts at the same rotation as the applet.
Edit: A couple of things I meant to mention and forgot - this will be in 4.0.1, and the jagged edges do exist in the original, but are made worse by the scaling of the images (click on them to get full size).