JollyOlly said:
Would it be true to say that from the point of view of the falling observer the radius is Rs but observed from outside the radius is much larger?
Not really. First of all, you can't observe the interior of the BH from the outside, so an observer outside the horizon has no way of measuring any distances inside it.
More importantly, though, the black hole doesn't really have a "radius" in the ordinary sense, because it's not an ordinary object. The singularity at the center of the BH is not a place in space; it's a moment in time. To an observer who has just crossed the horizon, the singularity is in the future; it's not some distance away. By that I mean, not just that the observer will reach the singularity some time in his future; I mean it is in the future in the same sense as tomorrow is in the future. There is no meaning to the question "what is the spatial distance from now to tomorrow?"
When Thorne talks about the "radius" inside the BH being possibly infinite, he means something a bit different: he means that the spacetime geometry inside the BH is such that there are spacelike curves that are infinitely long! But none of these curves intersect the singularity, so none of them can be used to say that there is an infinite distance to the singularity. What their presence means is that, as an observer inside the hole is falling inward, there is a sense in which the space he is falling through is infinite--an infinite space that, for him, will come to an end in a finite time.
JollyOlly said:
Would the event horizon subtend the same angle as a star whose radius was equal to Rs?
If you ignore the effects of gravitational lensing, yes. But taking gravitational lensing into account (i.e., the fact that light that passes close to the horizon has its path bent, similar to the way the Sun bends light passing close to it but much more intensely), the horizon will appear to occupy a larger area, as judged by the area in which no objects behind the hole can be seen (you can't actually see the horizon itself).