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Does this game run in full screen?

By default yes, can press F11 at any time in-game to toggle

But why all the screenshots here are only about 1/3 of screen?

(+1)

The game was originally designed to be a vertical oriented game (inspired by vertical shoot-em-ups), problem is monitors are landscape. So my game makes use of a dynamic background to square it out, and a static monitor image to fill the rest. It does help sell the mood besides cover a technical issue.

The main problem with scaling the game map itself is it would fundamentally change the gameplay and break many things. Give it a play, you'll see what I mean. If you like action games that is, I understand they're not for everyone