The idea is to eliminate the two line navigation layout which currently has tabs on top and the navigation buttons, menu and URL bar below. The compact navigation model would only have one line and place the navigation buttons, a search button, tabs and menus next to each other. The URL bar is gone and the URL of each tab is not visible at all times, but only displayed when a page is loading and when a tab is selected.
Go Google go!
This sort of innovation and change is on the level of Apple’s (in?)famous decision to start shipping computers without a floppy drive. With the advent of URL shortening services and the proliferation of odd company names, I believe top-level URLs are little more than keyboard shortcuts to our destinations, and longer URLs are only useful to machine interfaces. We users are actively being encouraged to think of browsers and Web services as the equivalent of applications on your desktop! And why not? Simple is great for users, and this is progress that’s simple! More room for content, for rich applications, for interaction: I love it!