I hate increasing padding and the removal of borders, leading to UI elements that just seem to run into each other. It looks like an unfinished mess.

Even with this fix it's still ridiculously tall --- in the space it manages to show only 3 lines: tabs, address bar/controls, and booksmarks bar, my current browser has 4 lines: a title bar (which shows the full title of the page, not these horrid cut-off fragments), a menu bar, tabs, and controls/address bar.

most people use touchscreens (phones / tablets)

...running Windows? I doubt that.