This is an issue relating to the HiDPI app scaling where we have the new options for 'use low density' or 'use high density'. If I launch xterm, I then get a shelf icon, and I then select 'use low density'. It then restarts and things are a better size. If I close it, and then launch xterm from the terminal...it will then launch in high density mode (as expected). The odd thing though is that if you right-click on the shelf icon, it'll say 'use high density'...which isn't correct.
I don't have a good solution to this...but I wanted to log a bug for it so we had it in the system.
Maybe we shouldn't show the option for 'use high density' if the app is configured for low density and it wasn't launched from the launcher. This is definitely a weird edge case...so not a priority.
Comment 1 by tbuckley@google.com
, Nov 14