Yes, the Fit, Fill, and None (or whatever they were - they are no longer) options have been removed.
Drop Zones are a major sticking point with me at the moment... Apple has screwed the pooch. If you stay with the standard drop zones, in FCPX, adding HD content gets forced into "box" shape (not even SD format!) and there is nothing you can do about it!!!!! If you try to scale, the image/media gets cropped within the square boundaries --- it's flat out maddening. Every time you turn off Crop and try to save, Crop gets turned back on. And, I've had to repair several effects that I offer publicly since the .0.4 update.
There is a workaround. Took me awhile to figure it out. The culprit is the standard DZ .tif file used as the "holder". It's natively 600x600 . What I did was create a 16:9 image file (1920x1080) that I load into the drop zone as a new holder and saving that out.
You might have to create a dummy image for the lower third dimensions. Try turning off Properties > Crop as well (watch for it too -- every time it comes back on -- and right before you save, turn it off). I've complained to Apple a number of times about this... hopefully they'll fix it for the next update.