As part of the Proton project overhaul, Mozilla developers intend to eliminate the compact panel display mode from the interface settings (Menu ‘hamburger’ in the panel -> Customize -> Density -> Compact), leaving only the normal and touchscreen modes. The compact mode uses smaller buttons and removes unnecessary white space around panel items and tab areas to free up additional vertical space for content.
The reason cited is the desire to simplify the interface and offer a design that would suit most users. It is noted that the compact mode toggle is quite difficult to find in the settings and, according to the developers, few people use this mode (when analyzing telemetry, developers overlook that those who change the default settings are more likely to disable telemetry data transmission, thus falling out of the statistics).
According to Mozilla, 93.3% of users are using screens with a vertical resolution of 768 pixels or higher, which is why 768 pixels has been set as the minimum height for optimization — 92 pixels will be allocated for the tab panel and address bar (in the new design, the panel will be thinner than it currently is in normal mode). With the classic menu disabled, 88% of vertical space will be dedicated to content, not accounting for system panels and without considering that some users do not maximize the window. Given the trend of modern websites to fix headers and display a cookie usage warning at the bottom of the dialog that must only be accepted, navigation on laptops with small widescreen displays feels like looking through a slit.

Source: opennet.ru
