How to get Posts (blog/news) to display nicely?

I’ve been testing this theme in the last few days and I love it. The only issue I have is I can’t get the posts to display in a nice way. I intend to use posts for news articles on a site and I am using the ‘latest news’ template section with this theme which seems to be the only way to show news content on the page. My main problem is that when I have a news article with an image embedded into the post content, the image will not be shown on the main page for the news content. I have to set a “featured image” in the post and then the theme will show the featured image fine. However when using the featured image, clicking on the post, instead of showing the actual post content as-is, the theme shows the featured image on the top of the screen scaled up to full-screen size! This is especially terrible when your featured image is not high-resolution, and as I already have the same image nicely laid out within the news content, you also get the same image shown twice.

I think if here’s an option to not show the featured image above the post content, it would solve my problem.

Another, less serious issue is that there is a ‘BLOG’ button under the ‘latest-news’ section which I don’t need and I have not been able to delete this.