Nope, that doesn't work. I have the same problem.
It also enlarges photos & web pages so much I have to move them around to see the whole pic.
Zoom is not on. Double clicking with 1, 2, 3, 4, or 5 fingers does nothing. 5 fingers will size the whole window, but not the window content.
Setting a pic for the home screen is the same. Although the screen says to size & position the pic I choose from my iPhotos, it pops back to the zoomed level when I remove my hand from the screen.
It's hard to see any window you're typing into in safari because it's so zoomed in.
When I go into Settings>General>Accessibility, no zoom is turned on.