Temp might be a little high. I have saran wrap on my tank without any holes and once or twice a week I open a corner and kind of exchange the air out by blowing into the tank and pushing down on the wrap to let air out. This process takes about 2 minutes at most. By having holes in the wrap, you are causing humidity to escape, which can cause the plants to dry out.
Yes, I would lower the water more than what you have pictured.
- The other hobby
No planted tanks currently running (11/26/2014)