@ Peter ... your image is of the Designer screen. Does the overlap occur when the app is run on the device after it is compiled or during live development? I think not. What is seen in on the Designer screen is only a caricature of what will display on the device according to MIT.
@ gius ...will the apk be compatible with Google Play for tablets requirements when API4 is compiled in Responsive mode? Probably not. You will have to try and put something on GP. My understanding is the tablet improvements will result only in better resolution on tablets at least in the initial release of what MIT is now calling Responsive mode