I completely agree. FYI, in the browser extension, there is a “Compact Mode” available under Settings > Appearance, but it is really not that compact. I’ve raised this concern during beta testing, in the discussion here, here, here, and here.
FYI, I’ve updated your post title to more accurately reflect the concern that you’ve raised, since the forum is likely to see a large influx of topics posted about the new UI (original title was: “New Update”). I also changed your app tag to app:all, since the UI changes are across the board.