Description of problem: The up2date panel icon(s) look good in Gnome. It's a differnt story in KDE, as the button is part of a larger great area, about twice its width. This looks especially odd and bad when you have set you panel to be tranparent. So, the suggestion if very, very simple: make the button transparent around the edges, not great, so it can blend in with a tranparent background, like application icons do. They're beatifully done up2date icons, by the way. The blue checkmark, red updates waiting and green checking icons were very well done, so hats off to the person who designed them.
Yes, this should be fixed long time ago.