Definitely less space. It's a joke in my book as well. If I buy a 50" TV, I don't expect to see a search bar and buttons taking up part of the screen! :'(
Did anybody research the phone before they bought it? I'm pretty sure all of this was clearly stated in a lot, I'll repeat that, a lot of places. It would have buttons on the bottom of the screen and we all knew it would have a search bar at the top. Hopefully Google will change it but if you don't like it then download launcher pro or ADW ex.