Thanks, glad you like the update. And I appreciate the way you've asked this - giving me a chance to explain first rather than just demanding I change it back. Very refreshing.
So the reason I've made the menu item smaller is that you can now drag files directly to the top of the screen to open the Dropzone grid so you don't need the wider target. Also, some users have many apps in their menu bar so having a wide icon that took up two spaces was less than ideal. Also if you want to open the grid to click an action you can assign a keyboard hotkey to do this now (the default is F3). So you don't really need to click on the menu item any more either. This means that the menu item is now mainly for showing task status and for clicking to open the grid if you forget about the keyboard shortcut.
That said, there's a bit of an issue that has arisen under the El Capitan beta where when you drag files to the top of the screen it sometimes opens Spaces. I'm not sure why or if this is a bug (maybe it's for dragging files between spaces). But I can't see a way to disable it and it makes dragging files to the top of the screen to open Dropzone not work nearly as well, so I might have to reconsider bringing back the wider menu item if I can't find another way to workaround this.
I could probably make having the wider menu item an option. I've resisted this so far because I feel that many apps are bad in that they try to please everyone by having options for everything and the app just becomes a complicated mess of Preferences. I'd prefer to just make a decision that works for the majority of users and then not have a lot of options, because in my experience opinionated software is the best.