I like the toolbar. The only problem that I can see is that when you enter a room you can see what has been said before you enter. On one room I saw a conversation that had occurred 4 hours prior.

The thing about people being able to see that you are in chat even if you have a setting of invisible is not really new. With the "old chat", or the one in use before today all you had to do was scroll over the chat tab at the top of the home page and click "who's in chat". It shows people who are invisible there.

BTW, I just checked the toolbar list of how many people in a certain room (it said 2), then I checked the "old chat" listing and it listed about 10 people in that room. Presumably the ones not listed on the toolbar version are the ones set to offline.