People using the compact/folded menu mode in WP 2.7 should try Tangofy — well, since I made it, I believe everyone should try Tangofy :-) but I think it is most useful when the menu is folded and the only indication of what is what is the tiny 16×16 icons.

Tangofy — Better icons for WordPress 2.7
http://op111.net/p65

That said, I think Kaspars hit the nail on the head, right from the start, about the issues with the new menu in 2.7:

1. Forces clicking and scrolling

2. Implies an hierarchy of importance

3. Moves items up and down relative to the chrome

The folded menu does not have any of these issues, but it should have more helpful icons by default.

Cheers