Yes. Mark it as an enhancement. This won't be a priority, and we might not
even address anything (except maybe the thinner collapsed flyout).
PaletteView is also beneficial for really large palettes (hundreds of
items), and some clients use it exclusively (i.e., no flyout in the editor
if the view is not there). The real estate gain from making the flyout
shorter is not going to be much (esp. if we make it narrower), and I don't
think it's best in terms of usability (do you know of any other program that
does the same?).