iBooks still shows it as a thumbnail.
Marvin shows at about 50% of screen width and the text appears to wrap appropriately. However only the first line of text "overlays" the image while the next two lines just have a large right margin. (I will try and post the image if I can figure out how to do that from an iPad)
One thing I first noticed... The image with text overlay looks good in the normal viewing mode (black letters on white background) but starts to look really funky if you go to night mode or any other background color. Did you use a png/gif with transparent background?? I haven't played with that enough to know if transparency is even supported.
Cheers!
