Justin - did you get this figured out? It looks like you were able to change the link text. I don't understand quite what you meant about removing the small thumbnail from the template. You would simply need to uncheck the image field under "Visible Fields" on your list module.
As for the last last question, I'm using a bit of jQuery to make the whole entry clickable. It could also be done through some template mods, but the script also a good solution. Here's the code, which is "6. Entire block clickable" on this page:
Code:
$(document).ready(function(){
$(".pane-list li").click(function(){
window.location=$(this).find("a").attr("href"); return false;
});
});
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