As stated in the title, how do I customize these elements? It seems they are using transparent background which is very difficult to view on most background palettes
Add one blank css file after "angular-material.css" and inside that blank css file overwrite the rules you want to customize.
For the problem you are facing I added the following rules in my custom.css.
md-input-container.md-default-theme label,
md-input-container.md-default-theme .md-placeholder{
color:grey !important;
}
Here you could change color
or background-color
as you like.