Thank you for your bug report, where did you see that feature was removed? on
precise with nautilus 3.4 the view menu bottom has those options:
* icons
* list
* compact
ctrl-3 change the view to compact as it should
** Changed in: nautilus (Ubuntu)
Importance: Undecided => Low
** Changed in: nautilus (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/980625
Title:
Missing compact icon layout option in Nautilus
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