That should show you as many labels as possible. Because of the new multi-panel approach, you'll have to scroll down the sidebar if you have more labels than fit (like an iframe).
This is more bad (Easter-egg) UI: There's no visible control next to "chat" (or any of the other labels) until you've already rolled the cursor over it. Why would the user roll the cursor over there, if there are no visible controls?
It's incredible that we're LOSING common UI sense at such a rate.
Most desktop UIs are the same - there's all sorts of right click options on various UI elements, and have been for years. Drag and drop, drag to select, dragging stuff into your recycle bin or onto another folder to copy them.
How are you supposed to know that? By experimenting with your UI and learning how it works.
For websites, it shouldn't be necessary. I personally abhor the "hidden until hover" buttons that are becoming increasingly popular. I spent ten minutes trying to discover why GitHub had removed it's "edit issue" functionality until I realized that I had to hover over the issue text for the button to appear in the corner. It's horrible.
http://farm8.staticflickr.com/7101/6972254464_24774f868a_z.j...
Just for kicks, I switched to the default theme - same deal, mailboxes hide properly, etc. The red button's annoying, but hey, that's why I switched theme.
Perhaps you might want to quit flaming people (and Google) and fix your settings or browser or whatever the hell is wrong with your PC?
Further, he doesn't seem to be even the slightest bit interested in figuring out what's going wrong.
http://farm8.staticflickr.com/7100/7117915617_c0c8cab3fc.jpg
Any other wrong advice you'd like to try to contradict me with?