Seen while running Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.6; en-US; rv:1.9.3a6pre) Gecko/20100625 Minefield/3.7a6pre STR: 1. Load a fresh profile. 2. Observe the bookmark widget on the right hand side of the toolbar. 3. View | Toolbars and turn on the bookmarks toolbar. 4. Observe the attached screenshot - the widget turns into text.

If you pref the Bookmarks toolbar off, the icon reappears in its place next to the search bar. This might be intended but I guess I am not sure why the widget can't just stay where it is in the toolbar even when you turn on the bookmarks toolbar.

yep, it's by design, see mockups in the original bug 544817 we don't want to steal space in navbar if bookmarks are visible somewhere (better grouping)