Image menus using label.image

I have a bit of history with image menu labels using BOOPSI image objects. They were unusable in 3.1 and 4.0. I managed to get the bugs fixed in 4.0. I was trying them under 3.2. Most of the old bugs seem to be fixed. Hooray!

However, if I create a menu using label.image LABEL_Text, upon highlighting the menu item it is attached to, the text goes large (I think it's rendering in a default font, maybe Topaz) and isn't highlighted.

I suspect the reason is that label.image does not have any concept of selected images, at least in the case of text labels.

Can we have a fix for this please?