if you go to the videos, which are "home videos" in itunes, right click on them and press get info. You can change what they are. You can set them as Movies.
I recommend selecting all home videos, pressing cmd-i (get info shortcut) and changing them all at once. Saves you some time.
Under the get info window, make sure its only from one file, click the Artwork tab. You can drag and drop an artwork which will be displayed instead of a freeze frame from the start of the movie. Looks much better aswell when you have artworks.
type the title of the movie followed by "cover" into google images. Select an image that is somewhere between 400x600 - 1000x1500 pixels. That gives the best results.
By the way, on the ios 7 on iphone, I have the artwork aswell as title displayed