The fundamental problem is the studio in Leeds is very small, and in converted office space, so any set is going to be something of a compromise and look worse than the likes of Newcastle and Southampton with their big 'proper' studios.
Given that news bulletins just involve a presenter or two, a desk or coffee table (or both), and presenter seating (chairs and/or sofa)... they might as well be in very small studios.
It's not like a news bulletin needs enough space to accommodate a huge chorus line of dancing showgirls, or whatever. It's not a Saturday night light entertainment spectacular.
I would say that the likes of BBC Newcastle and Southampton's are very much needlessly large for news. AIUI the "A" studios of their current buildings were originally envisaged as housing programmes for network, whilst the regional news would be in smaller "B" studios. The network programmes idea seldom/never materialised AFAIK (possibly only a handful of things circa the early 1990s, which I believe is when the buildings opened?). And so South Today and Look North (Newcastle) moved into the large studios, just because they could.
I see no problem with the small studio in converted office space that BBC Leeds (amongst others) has.
I is well eloquent, innit.