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Firefox Finally Did It (Tab Groups)
(linuxiac.com)
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Community icon by Alpár-Etele Méder, licensed under CC BY 3.0
There is a keyboard shortcut. It's CTRL+ALT+Z for me. Unless you mean something else?
As for the "reveal on hover", iirc there was a dismissable message that said it is coming soon.
If I can share my opinion, they are more than big enough if you toggle the checkbox "optimize for touch screen". I would have to try Arc or Zen again to understand what you mean.
The only complaint I have is that I need to hover (or expand) to see the title. It becomes annoying when I'm reading documentation and I end up with multiple tabs with the same icon.
EDIT: I can't seem to find the "optimize for touch screen" checkbox anymore, but I'm sure there is something like that somewhere because I enabled it on one of my devices which has a touch screen.