Hi Tanner,
Thank you for the feedback.
We will need to think of ways to make editing nested elements more intuitive.
By increase size via dragging, do you mean the field in the Properties panel? You can still select the element by double clicking on the field.
In the upcoming release, you will be able to close the panel that you don't need to give you more real estate to use the panels.
Thank you again for the feedback. Please keep them coming so we can improve Google Web Designer further.
San
Google Web Designer team