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

chrome/browser/ui/views/location_bar/location_bar_view.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/location_bar/location_bar_view.h"
 
 #if defined(OS_LINUX)
 #include <gtk/gtk.h>
 #endif
 
@@ skipping 633 matching lines @@
   // When used in the app launcher, don't draw a border, the LocationBarView has
   // its own views::Border.
 
   // Draw the background color so that the graphical elements at the edges
   // appear over the correct color.  (The edit draws its own background, so this
   // isn't important for that.)
   // TODO(pkasting): We need images that are transparent in the middle, so we
   // can draw the border images over the background color instead of the
   // reverse; this antialiases better (see comments in
   // AutocompletePopupContentsView::Paint()).
-  gfx::Rect bounds(GetLocalBounds());
+  gfx::Rect bounds(GetContentsBounds());
   bounds.Inset(0, kVerticalEdgeThickness);
   SkColor color(GetColor(ToolbarModel::NONE, BACKGROUND));
   if (mode_ == NORMAL) {
     SkPaint paint;
     paint.setColor(color);
     paint.setStyle(SkPaint::kFill_Style);
     paint.setAntiAlias(true);
     // The round corners of the omnibox match the round corners of the dropdown
     // below, and all our other bubbles.
     const SkScalar radius(SkIntToScalar(BubbleBorder::GetCornerRadius()));
@@ skipping 557 matching lines @@
   template_url_model_ = NULL;
   ShowFirstRunBubble(bubble_type_);
 }
 
 #if defined(OS_WIN)
 bool LocationBarView::HasValidSuggestText() {
   return suggested_text_view_ && !suggested_text_view_->size().IsEmpty() &&
       !suggested_text_view_->GetText().empty();
 }
 #endif