Properties/Layout isn't labeled?
The reason you can't drag to size is backwards compatibility with programs expecting a 80 characters wide text screen. But adjust the screen buffer width and then one can drag it up to the buffer size. The difference? If one does that then it's the _user_ that selects to have less compatibility by default. And compatibility have been MS bread and butter.
BTW the Unix solution to resizing is frankly a hack. The MS solution have less chance of failing but isn't really a good solution either.