That is indeed strange. I can confirm the behavior with the Labs feature you mentioned.
I don't know a lot about email encoding but the resulting message seems correct--you can see it in this Gist but doesn't display correctly in Gmail. When I do Inspect Element on the non-image in Gmail it appears that the <img> element has title and alt attributes but no src. Have you tried viewing it in another email client?
It certainly seems like a bug. I'd suggest bringing it up on Gmails' help forums. While GOOG itself isn't particularly responsive there you may find other people who have more insight into this issue.
A workaround that does appear to work, however, is shortening the URL beforehand. I tested it with both TinyURL and Goo.gl and it worked fine, at least when viewed in Gmail (the top message is with the full URL, the bottom is with the Goo.gl-shortened URL:

Sorry that's not a complete answer to your question, but I hope it helps.