Does this look normal to anyone?

The plants look fine.  Some are very condensed while others have lots of spacing.

Looks good to me; very healthy.  The more compact plants seem sturdier in my experience. 

That's a Bounty that the plants are in, isn't it? I usually keep two pepper plants in a Bounty, but I haven't grown Fresnos. My Bounty experience is with Sweet Heats, Green Bell Peppers, and Banana peppers. I suppose that two Fresnos may be too much if the Fresno plants grow really huge.

You could try adding some extra nutrients (perfectly okay when the plants are heavy feeders), and maybe some CalMag and/or Koolbloom.

If you take the smaller plant out, the larger plant will probably produce more peppers than it will if it continues to share the AG.

Maybe mike has some ideas?

Peppers don't need much pruning, but they do benefit from light pruning. It's safe to remove lower leaves that are no longer getting light, and the lower suckers (the extra shoots that come out of nodes with developed leaves or branches). Getting rid of leaves and suckers improves air circulation, which is fairly important to healthy AG plants.

For me, topping peppers only results in a lot of small, dense, broomlike growth at the point where I made the cut. So when I prune peppers that have grown up close to the lights, I go down fairly far to a Y-branch and cut off one or both branches. It's okay to take off branches that have flowers, because your plant will produce more leaves and blooms.

Peppers and tomatoes don't produce fruit until the main stem produces at least one Y-branch. That's just a spot where the stem splits into two branches that grow upwards--the whole thing makes a Y-shape.

One of my peppers was shedding leaves like that recently. It was stressed from being moved from another AG. Usually plants don't mind the pod transfers, but this one hated having its roots exposed or disturbed.

A couple of other things that sometimes cause leaf drop in my plants are: (1) another plant that is hogging the nutrients, and (2) a room that is too warm so that the water gets too warm.