Ipad 2 with ios7 won't play widescreen/landscape

Frustratingly, i cant really find any info on what you'd think would be a huge concern/complaint with ios7...
Just noticed that with ios7 update the ipad 2 wont play movies and music videos (purchased in itunes) in widescreen / landscape mode.  The guide says you double tap to go fullscreen but all it does is zoom in on the middle of the picture and cuts out about 60 percent of the image. The guide is wrong so this is a bug! There is no other way to put it, but obviously they wouldnt have released the update without noticing this. Before, you just held the ipad in fullscreen mode and it automatically adjusted. It made sense and worked as it should.
If this is truly not a bug but an intentional loss of functionality I'm at a complete loss.  If this is the case it's a slap in the face to the consumer as we are not having the goods we purchased in the same functionality we could reasonably expect when we paid for them. In any other context the consumer would have a reasonable expectation to a refund over something like this. I fail to see any logic to this at all other then planned obsolescence.
Am i missing something? If not, can anyone explain?

A FREE version of MusicVideoPlayer was just released!
http://itunes.com/apps/MattByrne

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