I've added the features required to achieve the compact mode.
Top Bar, Project Switcher Position, Edit Mode Toggle Position will be configurable via Main Menu -> View -> Appearance. I agree that the proposed compact view (as on the screenshot above) will be a better fit for most use cases, so Freeter will have the default configuration to display the components exactly that way:
Top Bar = Hidden
Project Switcher Position = Tab Bar (Right)
Edit Mode Toggle Position = Tab Bar (Right)
To have the UI look as in Freeter <=2.6, the View -> Appearance settings should be:
Top Bar = Visible
Project Switcher Position = Top Bar
Edit Mode Toggle Position = Top Bar
The update is not released yet. Still finalizing things and working on other features. Hopefully will release it in a few days.