I'm really not sure. I just checked the Terminal app and I see they didn't exaggerate the corner rounding like they did in Safari.
I think Apple is a bit lost. They had some inadequate person at the helm and that person made a mess. That person has now left. I have no idea how much damage we'll see over the years before things get fixed or developers learn hard lessons on what works and what doesn't. What we will see, as applications update to these new designs, is varying levels of success. Most developers are not top notch designers. Apple has handed out powerful tools and poor examples to follow. They've given guns to children.
The damage from Liquid Glass will not be limited to Tahoe. One of my favorite programs is OmniOutliner. If you update to the latest (which has some nice features), you get design changes even if running on Sequoia.
Here's what the prior version looks like.
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Now look at the updated version on Sequoia. In this version they've extended both sidebars to the top and moved the title inline with the toolbar. Almost all the toolbar buttons are inaccessible except by using the expander on the right (">>"). You cannot see the full title without hovering over it. (Imagine you have two windows open, each on different versions of the same document, with titles suffixed with "v1" and "v2".)
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Why did they do that? I guess that they have some code sharing with the Tahoe version which looks like this.
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But even here they can't fit all the buttons. They would have been able to had they not extended the left sidebar to the top. Unrelated to lose of usable space, the left sidebar is problematic whenever I highlight various rows in different colors (I do that all the time to categorize them). The varying colors from different rows make the sidebar hard to see.
I'm still happy with the OmniOutliner upgrade for other reasons and I would still recommend it. Turning off translucency and remembering to collapse the right sidebar helps a ton.
Contrast this update to DEVONthink's update to Liquid Glass. They made choices more tuned to usability. I haven't run it on Sequoia. On Tahoe, you can see the sidebars on both sides do not extend to the top. They have so much more room for the larger Liquid Glass buttons. They also didn't make the sidebars translucent. Or, put another way, the content is just in the middle; it doesn't extend to the areas under the sidebars.
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The success of this rollout is discussed on their forums. Even though they rounded the corners, I'm not suffering at all from their update. It really does look great.