The screen being zoomed in is because this app does not yet support screen scaling. It was designed and developed at 1080p...so if you are running a low resolution, it will likely not show up correctly. I'm hoping to have screen scaling included in the near future.
Interestingly enough, I finished version 0.4 last night. It includes the ability to launch your XBLA titles right from XM360. So, that means you can peruse your collection, and launch the highest rated titles with ease.
I'll try to get it uploaded to the usual places this evening.