Cobra....I think if you covered all of the dirt with moss they would be much better off. In one of the pics it looks like the little fella was a bit overwhelmed trying to navigate through it. I covered my substrate completely with moss so they have a nice carpet to walk on.
I feed my newts by hand......using a chopstick I scoop out some black worms and hold them right in front of thier faces and they scoff them down. I also feed freeze dried tubifex worms the same way..soaking them in the tank water first so it sticks to the chopstick.
I think your newts would like the land area if you just cover the dirt with some moss...be patient and give them some time to adjust. Have something in there that they can hide under too, they will feel more secure. Mine hang out under the plant in the corner most of the time...and now the piece of bark I have in there is a happy hangout for them too.
AND......you can do all the research you can find before you buy something new.....and still have to learn from experience once you bring them home. Reading about something and then actually working with it can be two different things. You're doing fine cobra, just keep doing the 'educated' trial and error thing until you find something that works for them.
I would keep the land...just more moss ground cover and places to hide.