So, you would prefer that (for example) the edit bar (formatting option for the top of notebooks) be expanded to cover the options currently in the Writing assistant palette? I think this is a useful idea. Right now, the option is a very simple form of the ribbons, etc., available in most word processors, although the ones in Word are way too complicated for the more modest needs of a notebook.
I have the same issues with palettes obscuring notebooks, etc. especially when I use my laptop. The UI is functional, but dated, as you say. The classroom assistant, and other palettes derived from them seem to be unchanged from 2008 when they were introduces, and the widgets in them are not really aesthetically pleasing. No criticism of the developer -- the functionality of the palettes is excellent -- but the UI elements are, in general, not very pretty. This may be due to the fact that their metrics, if not appearance has to work across Linux, Windows, and macOS. The equivalent format pane in the On-line version of Mathematica may be a step in the right direction.