My workaround is to make a standard 48x48 (or whatever dimensions you like) grid that forces the icon to be a certain size and constrains the text so it doesn't overlap other icons.
Windows 95+, in this (rare) case, actually has done something correct.
I believe Xubuntu (XFCE) has this functionality as well.
We've had this shit for 8 years now, this reeks of corruption.
I wouldn't be surprised if somebody is paying off high placed developpers to divert manpower to other things and maintain small but important flaws.
This bug is one of the biggest newbie turn-offs I know about.
Microsoft would lose milions every year if ubuntu went mainstream. It's natural to assume they'd legally but discretely pay off some people as part of risk managment(typical in economy) and important unsolved bugs like this one are proof of this.