Following everybody's responses, I gave it another shot. What seems to have happened is that the sweet spot has shifted considerably to the left of the display. Also, to bring up the control palette while reading now requires a tap way to the left of center.
So it turns out that I have no actual loss of functionality, so I am much relieved. I can easily live with this weird offset. I continue to be a happy customer. (Though I would like an easier way to navigate through a long library list. Perhaps a touch-and-hold popup that lets me select the first letter of where I'd like to jump.)
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