Feature request
An md-list-avatar in a single lined md-list-item should align horizontally with the md-list-item text.
The md-list-avatar does not align, the icon appears 8px more to the top then the text of the list item.
Create an md-list with list items containing an md-list-avatar and md-line, the issue occurs also on md-nav-list as well as non dense lists.
<md-list dense>
<md-list-item>
<md-icon md-list-avatar>arrow_forward</md-icon>
<h4 md-line>Pepper</h4>
</md-list-item>
<md-list-item>
<md-icon md-list-avatar>arrow_forward</md-icon>
<h4 md-line>Salt</h4>
</md-list-item>
<md-list-item>
<md-icon md-list-avatar>arrow_forward</md-icon>
<h4 md-line>Paprika</h4>
</md-list-item>
</md-list>
Providing a Plunker (or similar) is the best way to get the team to see your issue.
http://plnkr.co/edit/HsygqK66et7JhsNEDgq4?p=preview
The layout doesn't look right without this change.
Test on angular 2.4.2, material 2.0.0-beta.1, MacOs El Captain, Google Chrome 55.0.2883.95 (64-bit)
The md-icon doesn't have a specific height for the usage in an md-list. Adding height:24px to the md-icon will fix it.
@tobi-or-not-tobi I'm not sure if it's a bug because md-icon is not recommended. However, setting a custom class on <md-icon md-list-avatar class="menu-icon">arrow_forward</md-icon> to override the default height i.e 40px to 24px manually is the real strategy.
I've been doing it too.

Thanks @codef0rmer that's indeed what I did to fix it. I didn't know it was not recommended, I actually think its a very common to use an md-icon in a list like you and I do. I'll rewrite the issue to change it from but to proposal.
To display an icon in list item use md-list-icon directive instead of md-list-avatar.
Thanks @ocarreterom I wasn't aware of that feature.
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Most helpful comment
To display an icon in list item use
md-list-icondirective instead ofmd-list-avatar.