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

views/controls/textfield/textfield.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 "views/controls/textfield/textfield.h"
 
 #if defined(OS_LINUX)
 #include <gdk/gdkkeysyms.h>
 #endif
 
@@ skipping 266 matching lines @@
 size_t Textfield::GetCursorPosition() const {
   DCHECK(native_wrapper_);
   return native_wrapper_ ? native_wrapper_->GetCursorPosition() : 0;
 }
 
 ////////////////////////////////////////////////////////////////////////////////
 // Textfield, View overrides:
 
 void Textfield::Layout() {
   if (native_wrapper_) {
-    native_wrapper_->GetView()->SetBoundsRect(GetContentsBounds());
+    native_wrapper_->GetView()->SetBoundsRect(GetLocalBounds());
     native_wrapper_->GetView()->Layout();
   }
 }
 
 gfx::Size Textfield::GetPreferredSize() {
   gfx::Insets insets;
   if (draw_border_ && native_wrapper_)
     insets = native_wrapper_->CalculateInsets();
   return gfx::Size(font_.GetExpectedTextWidth(default_width_in_chars_) +
                        insets.width(),
@@ skipping 112 matching lines @@
     }
 #endif
   }
 }
 
 std::string Textfield::GetClassName() const {
   return kViewClassName;
 }
 
 }  // namespace views