Good observation and great question. When a page is selected as the “posts” page, WordPress ignores just about everything except for the title and slug. Anything else that’s entered into the page as far as custom fields or featured images will not be taken into account.
If you wanted to edit the hero-options.php file, you’ll see this line:
<?php // this prevents the first post from having it's hero section from being at the top of the blog/archive page ?>
You could replace that code note with something that you’d like to have displayed in the hero section of the home page. You can use the code from the front page of the demo as a template for what to add in there:
<style>
#hero-section { background-image: url(https://demo.organizedthemes.com/elite/wp-content/uploads/sites/29/2013/10/firewood.jpg) }
.hero-copy h2.hero-title { color: #ffffff }
.hero-copy h2.hero-title { background-color: # }
.hero-copy p { color: # }
.hero-copy p { background-color: # }
.hero-copy a.button.hero { color: # }
.hero-copy a.button.hero { background-color: # }
.hero-copy a.button.hero:hover { color: # }
.hero-copy a.button.hero:hover { background-color: # }
</style>
<div class="hero-copy center-text">
<div class="hero-title-holder">
<h2 class="hero-title">WELCOME TO ELITE</h2>
</div>
<div class="hero-caption">
<p>A full-screen plus WordPress theme.</p>
</div>
<div class="hero-button-holder">
<a class="button hero" href="http://demo.organizedthemes.com/elite/features/">Learn More</a>
</div>
</div>
<div class="scroll-down"></div>
Hope that helps out. If you have any trouble, let me know.
Have a great day,
Bill