I came up with a work-a-round. The instructions to remove selective photos from Photo Stream. It's written for those using iCloud Control Panel to sync with PC. Those with Macs should be able to get the same result if they substitute for the Photo Stream folders that are used with iPhoto, or Aperture. So for instructions to remove just a few photos Go here:
I do have to warn you this is by no means convenient, but it works for now until we get an update. Let me know what you guys think.
I'm not sure you guys know this, or not, but if you turn off and on Photo Stream on your device, it erases the photo stream files just for that device. No iCloud.com reset needed. So basically after you take a bunch of photos, and don't want the wasted space cycle photo stream on and off just on your phone. Your pictures will still be backed up in the cloud and on your computer, but will NOT sync back to your phone again unless you upload them manually using iCloud Control Panel.
I hope that helps out some people neither solutions are perfect.
It would be real nice if apple would add support for deletion, but I'm starting to think it has something to do with the difficulty setting rules for how multiple devices handle editing the same files in the cloud. Redundancy is the safest bet to avoid data loss.