They look fine to me. As pointed out, the blades are mulching blades only the outer tip makes first cut/contact with grass and the rest is designed to chip into finer bits.
With that said, I moved to using Oregon Longer Life 596-900 Gator Fusion G5 3-In-1 Mulching Blades on my Craftsman tractors (and all mowers) and they make a huge difference in both cutting and mulching. They are significantly heavier and spin up more slowly when engaged but once they spinning, the are fantastic. I highly support them with one caveat: many folks complain about vibration with the larger and heavier blade, but to me, it's not a big deal. I've been running them for 3-4 years and mandrels on both of the Craftsman tractors are fine and show no signs of problems from heavier blade, but, they do take longer to brake to a stop when disengaged - again due to the much larger mass.