You are right.

Disk Utility in the current version (see below) from Linux Mint 12.10 does not 
have this problem.
But maybe it has something to do with the policy of only allowing LUKS to be 
formatted with EXT4. That is the only option. After that's done, you have to 
select the unlocked EXT4 partition to format it as something else, e.g. NTFS.

Sorry for getting back so late but it is not every day that I have a
spare 4TB drive to format.

$ sudo apt-cache show gnome-disk-utility 
Package: gnome-disk-utility
Priority: optional
Section: admin
Installed-Size: 880
Maintainer: Ubuntu Developers <ubuntu-devel-disc...@lists.ubuntu.com>
Original-Maintainer: Utopia Maintenance Team 
<pkg-utopia-maintain...@lists.alioth.debian.org>
Architecture: amd64
Version: 3.6.1-0ubuntu1
Depends: libc6 (>= 2.7), libcairo2 (>= 1.2.4), libgdk-pixbuf2.0-0 (>= 2.22.0), 
libglib2.0-0 (>= 2.31.18), libgtk-3-0 (>= 3.5.8), libpango1.0-0 (>= 1.18.0), 
libpwquality1 (>= 1.1.0), libsecret-1-0 (>= 0.7), libudisks2-0, 
dconf-gsettings-backend | gsettings-backend, udisks2
Pre-Depends: dpkg (>= 1.15.7.2)
Filename: 
pool/main/g/gnome-disk-utility/gnome-disk-utility_3.6.1-0ubuntu1_amd64.deb
Size: 180382

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https://bugs.launchpad.net/bugs/1083644

Title:
  Palimpsest does not support gparted GPT

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