Somewhat compacted the embedded thread view, but it probably needs a more thorough redesign.

lms/static/sass/_discussion.scss

@@ -1418,7 +1418,53 @@ body.discussion {
 
 /* For some reason I have to do this to get the SCSS to compile, can't stick it under the above .discussion-module */
 .discussion-module {
+  section.discussion {
+    /* Course content p has a default margin-bottom of 1.416, this is just to reset that */
+
+    .discussion-thread {
+      padding: 0.5em;
+
+      p {
+        margin-bottom: 0em;
+      }
+      .discussion-article {
+        border: 1px solid;
+        border-radius: 3px;
+        box-shadow: 0 1px 3px rgba(0, 0, 0, 0.15);
+
+        .discussion-post {
+          header {
+            padding-bottom: 0.1em;
+            margin-bottom: 10px;
+
+          }
+          .post-body {
+            font-size: 14px;
+          }
+        }
+
+        .responses {
+          margin-top: 10px;
+
+          header {
+            padding-bottom: 0em;
+            margin-bottom: 5px;
+            .posted-by {
+              font-size: 0.8em;
+            }
+          }
+          .response-body {
+            margin-bottom: 0.2em;
+            font-size: 14px;
+          }
+
+        }
+      }
+    }
+  }
+
   .discussion-reply-new {
-    display:none
+    display:none;
   }
+
 }

lms/templates/discussion/mustache/_inline_discussion.mustache

 <section class="discussion">
   {{#threads}}
-    <article class="discussion-article" data-id="{{id}}" id="thread_{{id}}">
+    <article class="discussion-thread" id="thread_{{id}}">
     </article>
   {{/threads}}
 </section>