Statusbar in Firefox can be very useful to the users for a number of reasons for example, it shows the URL when you hover over a link and other status information when a website is loading. It can also show some other extension specific information(or buttons) if some extension is installed that makes use of the Firefox statusbar to show useful information. If you are annoyed by the fact that statusbar takes a lot of space at the bottom in the Firefox interface you can use the Status Bar: Compact & Dynamic Firefox extension to replace the statusbar with dynamically appearing status area and separate tray. So it takes a minimum amount of space without losing any functionality.
Note that this extension is not compatible with latest Firefox 4.0 betas! Apparently, it only works in Microsoft Windows. Status Bar: Compact & Dynamic Firefox extension can be downloaded here.
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