Why is there very little water in the washer during a cycle? Is this normal?

Yes, this is completely normal operation for this High Efficiency low-water washer. The washer automatically senses the load size and adds only the correct amount of water needed for optimal cleaning, so the load will not be completely submerged as with a traditional agitator-style washer. You should not add more water, as doing so lifts items off the washplate and results in less effective cleaning. (Page 4, Page 15)