The answer is fairly straight foward... the player's view of the world has a fixed height. No matter how big or small the window into the world is, Blizz will always fill it with the same vertical information. So, when I push the bottom edge of the world view up to make room for the nUI dashboard, you still see the same amount of vertical space in the world (ie: in that image set I posted, the top of the tree is still at the top of the wndow, and the bottom edge is the same too). But, the aspect ratio of the window changed... it is now wider, relative to the height than it was before I moved the bottom edge up. So, Blizz fills that extra width with more of the world that you couldn't see before. So, even though nUI makes the view port smaller than it is in the default UI, nUI actually shows you *more* of the world than the default UI. If you turn the viewport off so you can use a transparent skin, you actually lose that extra information about the world. That is of particular value in PvP and battlegrounds.
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