I'll create a drop-in image pixelator component with a slider to control the pixelation level. This component will allow users to upload an image, see it displayed, and adjust the pixelation effect in real-time.

This implementation creates a drop-in image pixelator with the following features:

1. Users can drag and drop an image onto the component.
2. The image is displayed and pixelated in real-time.
3. A slider allows users to adjust the pixelation level (pixel size) from 1 to 50.
4. The pixelation effect is implemented using HTML canvas for efficient processing.

To use this component:

1. Drop an image onto the designated area.
2. Use the slider to adjust the pixelation level.
3. The pixelated image will update in real-time as you move the slider.

The component is responsive and should work well on various screen sizes. The pixelation logic is separated into a custom hook for better organization and potential reuse.

You can further customize the styling or add additional features like saving the pixelated image or allowing file input through a button if needed.