Why Gmail 2.0 on the iOS is still not usable?

When I downloaded Gmail 2.0 on the iPhone I thought that folks at Google had nailed it. Good UI, multiple account support and super-fast search (Mail apps search sucks).

This was supposed to be it. I replaced the Mail app with Gmail. 

Until, I started noticing that the html emails don’t render well in Gmail.

This one is from Mail app. 

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This one is from Gmail. Look at how tiny the fonts are? Even the pinch and zoom doesn’t work well. 

It is almost there..Maybe one more iteration. 

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BTW, I am hooked onto VIP notifications on the Mail app.