Looks like this was fixed upstream as 554962 rather than 468075.
http://svn.gnome.org/viewvc/gnome-control-center?view=revision&revision=9038
http://bugzilla.gnome.org/show_bug.cgi?id=554962

A workaround for me was to use gconf-editor to set
/apps/metacity/general/action_double_click_titlebar (and
action_middle_click_titlebar) to "toggle_maximize_vertically" instead of
"toggle_maximize_vert".

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Gutsy: expand window to full height now goes to far in GNOME
https://bugs.launchpad.net/bugs/133541
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