I can NOT confirm this bug is fixed. 
Using: Karmic on Asus eeepc 1000h; without the netbook launcher (regular 
desktop).
Titlebar remains in  applet after closing window, also after switching to an 
empty workspace. In both cases it disappear only after clicking on another 
surface (the desktop or other window). 

** Changed in: window-picker-applet (Ubuntu)
       Status: Fix Released => Confirmed

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closing the last window with the close button leaves its title displayed
https://bugs.launchpad.net/bugs/375035
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