It turns out I had the sense of the GetLocalBounds bool wrong everywhere, so ...

chrome/browser/ui/views/frame/browser_view_layout.cc

 // Copyright (c) 2011 The Chromium Authors. All rights reserved.
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
 #include "chrome/browser/ui/views/frame/browser_view_layout.h"
 
 #include "chrome/browser/sidebar/sidebar_manager.h"
 #include "chrome/browser/ui/find_bar/find_bar.h"
 #include "chrome/browser/ui/find_bar/find_bar_controller.h"
 #include "chrome/browser/ui/view_ids.h"
@@ skipping 230 matching lines @@
 
 void BrowserViewLayout::ViewRemoved(views::View* host, views::View* view) {
   switch (view->GetID()) {
     case VIEW_ID_BOOKMARK_BAR:
       active_bookmark_bar_ = NULL;
       break;
   }
 }
 
 void BrowserViewLayout::Layout(views::View* host) {
-  vertical_layout_rect_ = browser_view_->GetContentsBounds();
+  vertical_layout_rect_ = browser_view_->GetLocalBounds();
   int top = LayoutTabStrip();
   if (browser_view_->IsTabStripVisible() && !browser_view_->UseVerticalTabs()) {
     tabstrip_->SetBackgroundOffset(gfx::Point(
         tabstrip_->GetMirroredX() + browser_view_->GetMirroredX(),
         browser_view_->frame()->GetHorizontalTabStripVerticalOffset(false)));
   }
   top = LayoutToolbar(top);
   top = LayoutBookmarkAndInfoBars(top);
   int bottom = LayoutDownloadShelf(browser_view_->height());
   int active_top_margin = GetTopMarginForActiveContent();
@@ skipping 179 matching lines @@
   // Layout resize corner, sidebar mini tabs and calculate reserved contents
   // rects here as all contents view bounds are already determined, but not yet
   // set at this point, so contents will be laid out once at most.
   // TODO(alekseys): layout sidebar minitabs and adjust reserved rect
   // accordingly.
   gfx::Rect browser_reserved_rect;
   if (!browser_view_->frame_->GetWindow()->IsMaximized() &&
       !browser_view_->frame_->GetWindow()->IsFullscreen()) {
     gfx::Size resize_corner_size = browser_view_->GetResizeCornerSize();
     if (!resize_corner_size.IsEmpty()) {
-      gfx::Rect bounds = browser_view_->GetLocalBounds();
+      gfx::Rect bounds = browser_view_->GetContentsBounds();
       gfx::Point resize_corner_origin(
           bounds.right() - resize_corner_size.width(),
           bounds.bottom() - resize_corner_size.height());
       browser_reserved_rect =
           gfx::Rect(resize_corner_origin, resize_corner_size);
     }
   }
 
   UpdateReservedContentsRect(browser_reserved_rect,
                              browser_view_->contents_container_,
@@ skipping 53 matching lines @@
     bottom -= height;
   }
   return bottom;
 }
 
 bool BrowserViewLayout::InfobarVisible() const {
   // NOTE: Can't check if the size IsEmpty() since it's always 0-width.
   return browser()->SupportsWindowFeature(Browser::FEATURE_INFOBAR) &&
       (infobar_container_->GetPreferredSize().height() != 0);
 }