Replacing the command with includegraphics reduces that space (but still left and right hand side are not centered vertically). My example slide looks like this:
\begin{frame}{\insertsubsection\ \mytitlesource{\sommerville}}
\begin{fancycolumns}[animation=none]
\begin{example}{Example Domains}
\begin{itemize}
\item \emph{embedded systems} where software has to interface with hardware systems
\item \emph{critical systems} with extensive safety and security analysis of specification and design
\item \emph{large software systems} that are typically developed by several companies
\end{itemize}
\end{example}
\nextcolumn
\pic[width=\linewidth]{misc/lawn-mower-cropped}
\end{fancycolumns}
\end{frame}
Replacing the command with includegraphics reduces that space (but still left and right hand side are not centered vertically). My example slide looks like this: