Haven't installed it yet--but are you saying that photos show full size in the feed vs. just a thumbnail requiring a click? Sounds like new ad formats are on the way...
Its an option. They default to a full size "card" , but you can make it more like the reddit websites traditional "compact" view. For the front page, press the button in the top-right to access the setting. For every other page, it is an option in the settings.