I for one like the flat hierarchy very much. I do not have many programs
installed and can access them fast by icon recognition (when I am not
using the finder).
I can see the problem when you have many applications though; I vote for
implementing the old sub menu structure as an option.
** Changed in: gnome-shell (Ubuntu)
Status: New => Confirmed
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[Lucid] Regression: All Applications list is no longer hierarchical displayed
https://bugs.launchpad.net/bugs/539305
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