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Yes, is normal if the pixelation in the sliders is 4. With that 1000/4= 250px. What you got is the 1:1 ratio, instead of the original big image pixelated. Years ago did a poll of what users prefer and final 1:1 ratio was the winner.  

After get that 1:1 version exported, now you can pixel resize in any tool like photoshop or whatever to any size you want.