Here is what the new mobile interface looks on tablets and smartphones. Notice how boxed in everything is:
Personally, I do not like how everything seems boxed in, but maybe it will grow on me?
Google said in the Google Web Search Help thread:
Why this design?
The redesign presents search results in a clustered card UI. This presentation allows for deeper, app-like experience with individual, easily-browsable results (e.g. oneboxes, flights, news, etc.)
Where will I see the changes?
Anytime you do a Google search from our homepage, google.com, or the main search results page for web results.
Why is there no background color on ads anymore?
We’re constantly evolving the search experience on Google and we'll continue to clearly label ads to help users distinguish between organic and paid content on the search results page.
Oh, that Ads label was being testing only for a short period of time.
Forum discussion at Google Web Search Help.