No its functioning correctly, you just need to select the thumbnail size you want for your images. For example, in your Genesis Featured Page widgets I can see that you didn’t select a thumbnail size, so it automatically uses the default “150” by “150” size. So in your Genesis Featured Page widget settings, make sure and select the size that you want. You can also create your own specific size if you want by taking a look at your functions.php file (look at the “/** Add new image sizes */” section)
For the slider images – The images themselves are probably too small. Here is the actual size of one of them – http://savvycities.com/wp-content/uploads/2012/08/disney-rockin-ever-after-tickets.jpg So you may need to go into the actual page or post that you added the featured image and choose a different size from the selection (small, medium, large, etc). Also, make sure you have your height settings at the correct size in your Genesis Slider settings.