I wouldn't say it's squashed together, nor that the designs with gaps between the elements make the text hard to read in any way - I have no problems reading them myself... It may be the downsizing?
I note though, most of the designs there haven't tried a full screen width lower third; from the new recreation I actually think it could look very nice.
The thought I had when doing the designs was use as little space as needed, because with HD you don't need to fill the screen with straps and tickers lol.
Yes... I guess that's fine. I was giving the aesthetic priority over that HD efficiency, you might say; text in small boxes generally have never been quite as pleasing on my eyes as longer straps.
But I know where you're coming from, and I can't really fault the execution at all from that point; it's top notch.