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About menu:

I'm one of those who actually like the "show on hover" function.
But why the background is white on mouse over? I mean, you are already using some kind of dark blue for highlighting tag suggestions (in the search).

So I vote for use that dark blue for menu hightlighting too. This also, thanks to the more armonic contrast will help to visually feel the menu less obtrusive.

@Cyberbeing:
#3 Removing hover behavior should be out of consideration, more than 1 click per seccond substracts fluency to navigation.