Early on they can look ugly, but get pretty later. So, never say never.
picture 1 teh one that is sickly? looks okay. little stretch, but nothing big deal.
don't feed to much early on and you'll be okay... while you may not want to let the substrate dry out as much as later on, do let it ebb and flow a bit... don't keep it wet all the time with no noticeable reduction of saturation.
Seedlings are more sensitive to everything, so the - 1" deep dry - concept shouldn't apply here.
the seed is packed with enough power for the first couple sets of leaves (non-cotyledoens). feeding regularly from day 1 will likely cause a toxicity.
the twisting may be from a slightly hot substrate (fert, not temp), but could just be normal... either way, it's minor. you defintely should not do anything as of when and how they look in those pictures.