Second - thumbnails are small and unreadable - they are fine. Google adds READABLE content to their results. That's infringement. Especially since content is cropped around the subject user searches for.
You can read the text on the preview on the right aside from the extracted portion? Because I'm pretty sure you're the only one. I can only make out the site logo, the headline of the page, some button text, and an odd word here or there. It's just a contextual image just like the surround text of the search phrase is contextual text.