Currently the Applications menu doesn't change size with the current resolution. It also crams 5 icons into each row with minimal padding, as opposed to the 4 in the Favorites area.

Application names are also often truncated with no way to display the full name.

This mockup (which you can minimally interact with):
http://mb.mirage.org/bugzilla/mockups/moreapps001/index.html

...demonstrates one method of removing the "cramped" feel, better utilizing screen space, and a method of seeing a full application name. Descriptions could then be relegated to tooltips (although that is not included in this mockup).

Note that the mockup should scale down properly to 800x600, and up to at least 1600x1200. Probably slightly ridiculous, but I'm a better programmer than graphic artist.