Chris,
From what I can make out in the photos, it looks like the spring is fully compressed in the closed position so that the insulated arm is actually supplying the pressure..the sure way to test would be to try to lift the contacts up while in the closed position..if they lift even a little bit then you are correct that it is only spring tension holding them down.
BTW the springs are there to help provide a fast make/break of the contacts.
As for the contact area issue, yes that is a problem as it is only making point contact at each end..that will heat up a lot under a heavy load. I guess it would be possible to dress the contacts down so they are flat and make full contact but that would most likely void the warranty.
How big are the contacts? They look to be only about 1/4 inch wide,,way too small for 400 amps IMHO.
What size service is this on? The incoming conductor looks awfully small too.