@graftedin, I’m sorry to hear you’re having trouble with the plugin. It sounds like you’re just upgrading to the 2.X version now? You’re right that the templates have pretty radically changed. These new templates 1) are much easier for new users to customize, 2) should be less-likely to change and easier to maintain in the future, 3) allow the use of template tags in the templates. I decided those major benefits outweighed the downside of overhauling the template; however, I know that means a bit of work for people like you who used old templates. I apologize for the inconvenience.
Regarding Advanced Excerpt, I just tested Feature a Page Widget 2.0.6 with Advanced Excerpt 4.2.3 on WordPress 4.4. (all latest) and HTML formatting worked as expected. However, it does seem like not all the features work quite as expected. Which parts of the Advanced Excerpt are you trying to use?
FYI, to have an auto-generated excerpt (rather than the custom one), you just need to use the fpw_auto_excerpt
filter.
Finally, the read more link is handled to improve accessibility and allow people to easily target only the widget output. If you want to change the “Read More”, there’s a filter for that too: fpw_read_more_text
.