I just downgraded to the previous WPtouch version and the menu is back to the old (better) way.
I read the changelog for the most recent update and as it turns out this is an intentional re-design…
In my opinion it looks much worse opening to the side. I think the old way is much neater and more compact!
I’m glad I could restore it to the older version from a backup as I don’t think I can get it elsewhere.