As far as I'm concerned, I can do without the title bar altogether.
Even better, what I would like to see in a GUI, and it would suit what you are doing, is, say, a Full-screen-view desktop that has just a little icon superimposed in a corner (I'm talking about when you have an application open and on top), the clicking of which would reveal your (currently shown) two bars. That is, you could go back and forth between Full-screen and non-Full-screen (what's it called, Window View maybe?) without having to press the little hardware button (which, at least on the N800, is a minor nuisance).
Also, within your scheme of things, I would want you to have an alternative desktop (or a "category) that showed the desktop applets, like Internet Radio, OMWeather, FM Radio (on the N800), etc.