Hehe "GLASS THEME". That would be ME!
Anyways... No the touch doesn't resize the icons for you. I tested this out when I was creating icons, I tried 80x80 and the problem was that the icon was going under the text and it just didn't look right, 70x70 was better, but not good enough. I would say either one of these next three sizes is the best: 59x59, 59x60, or mine in 60x60.
You can make the icons 100x100 if you want, it's only gonna look crappy. I dunno if you can really go that big, but I did do 80x80 and I noticed problems. I wouldn't go bigger than 65x65 max...