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I'm putting it back to release blocker, because 3.3 should decide whether to fix it/call it security/remove itself from the list.
The patch contains several small changes. I like the spelling fix (gsip -> gzip) in a test method, but otherwise, I prefer the alternative solution of an additional function parameter with a default.
I would prefer that the marker for "no limit" be None, rather than -1, 0, or anything less than 0.
I also don't see the point of raising a too-much-data ValueError *after* decoding. While that *might* mean we set the default too low, all we would really know for sure is that there would be a bug in gzip.GzipFile().read -- and ValueError suggests otherwise.