I don’t really have a problem with it. The shadows are clear enough to show boundaries (something that was missing from earlier Material Design iterations in many apps because nobody read the guidelines apparently).
I do lower the display scale to fit more on my screen, because for some reason every phone decides that making the screen twice as big means every icon needs to be twice as big as well. If you didn’t get the prompt to do so when you set up your phone, you should check the display settings.
Having run Android 4.4 on my old Oneplus One a while back, I’m pretty sure the toggles got physically smaller, probably because Holo lacked proper scaling settings to correct for the screen size.