[pablobm]

  > Separate address and search bars is old-fashioned.
  > As a user, I don't want to have to make this
  > distinction, and it's hard to imagine most
  > users-on-street wouldn't find this confusing

Although a UI problem, this is actually a privacy feature.

As you type into the search bar, autocomplete queries are sent to the search provider. This happens even if your intention was not to search, but just to enter URL manually.

In simpler terms: you are telling Google what sites you are visiting even when you don't use Google.

(AndrewDucker mentions this on this thread too, but his comment emphasises the UI aspect, whereas I think the privacy aspect needs to be stressed).

[Springtime]

Just make your own custom search keywords (right-click site's search box>Add a keyword for this search). Uses no autocomplete, and is much more time-saving than a separate search box.

I have around 30 set up, from Wikipedia (w) to Google Image Search (gis), etc.

[pablobm]

Of course there's always ways around things, but browser vendors have to (unless in specific cases) cater for the general public who don't know about personalisation. These are the people who need safe defaults most.

As power users, we tend to ignore the power of default settings. Their values have to be chosen carefully because only a small part of the public are even aware of them.

Several commenters here seem to imply that they shouldn't be the ones personalising their browsers. Turns out it's the other way around: they are the ones who know how to personalise it, whereas defaults should be about users who don't know how to do it.