The Div none are only like that to fix an error with the borders - that doesn't actually wrap the images (they do display).
I am currently running the following plugins (in order - thers quite a few):
Collapsible More Link
Spam Karma 2 - Reloaded
Blogs Of The Day
Customizable Post Listings
Get Author Profile
Better Image Rotator
WordPress Database Backup
WordPress Email Notification Plugin v2.1.1
Reducing the number of posts on the front page would simply mean that people would have to load them elsewhere...Is there a more creative way to create a splash page without having the actual posts fully loaded (e.g. Title + Image like news.bbc.co.uk)?