Yep the strut hat on the top - if those bolts aren't tight, you get the clunking. It's important they are tightened while the car is on the ground, not on the lift.
Another source of clunking from the front suspension is the sway bar end links. Mine came loose somehow and I got the noise over bumps at low speed. Tightened them up and the noise went away.
Your car looks like stock M-sport suspension height on a regular I. Looks normal to me ... certainly much better than the 4x4 look the xdrive models have from the factory.