Yup, Calibre was fixed a huge amount of time ago. It now does the right thing.
If you get a small thumbnail, you probably have wonky conversion settings. (OTOH, it would take no ASIN (ie. enable sharing over FB & co *checked*) on an old mobi7 to cause the Kindle to pick the thumbnail embedded in the file, which, yeah, is slightly too small on the PW. Unfortunately, Kindlegen still generates tiny embedded thumbnails too, so we're following suit, and assuming there's a reason for this (backward compat?)).
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