You have a point, but considering that there are two physical buttons on the Model One, they could've easily added another page for the remaining alphanumeric characters [the same applies to the Safe 3 model as well].
This is an example how address format looks like on Trezor 3 Safe:

Buttons are actually used for navigation up and down for confirmation of amount and fees, but I don't think it would be a good idea to split the screen of addresses in two part.
I don't see any problem with current format, but if people want bigger screen and characters I would suggest different wallets like Passport or Keystone.
Does this mean that when Trezor Suite detects the Trezor One hardware wallet, the address spacing feature is not displayed in Trezor Suite like what was experienced by SFR10?
Trezor Suite obviously detects exact model of Trezor device you are using, so there is no spacing both in device nor in Trezor Suite app, if you are using model One or model 3.
In other words, Trezor Safe 3, with the latest firmware (version 2.6.4), does not yet support the address space feature.
Correct.
No spacing for now.