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As a long time follower of spaces, and emailing apple many times on not getting it right, I read this thread and emailed them requesting everything mentioned here.
Then, and only then did I find out by looking at some apple videos the truth.
You don't need the menu bar menu icon of spaces any more.

What apple wants you to do is to buy a magic trackpad and start using it.
Manipulative, maybe, but very very worth it.

What you do is to swipe with 3 fingers to the right or left and your screen flows over to the window of the space to the left and the right.
You can keep swiping if you have more windows and you will travel there.
So that doesn't answer to what you want with the ability to click on the spaces icon?
Wait.
With the magic trackpad you now simply swipe your 3 fingers upwards and the space you are in appears on the screen with the other spaces on top.
You can then click one of the screens and you are there as spaces disappears and you are there.
Or you can drag from your screen in the center a document or application page such as a safari window, into one of the other spaces.
Or you can just take your 3 fingers and swipe your 3 fingers downward and you are back at the space you were in.
What they have done, and this is one of the big things I really wanted them to get into, was multiple monitor support for spaces. I have 4 monitors, so with each space I get to distribute to spread out to the 4 monitors and it remembers and keeps documents the way I left them. I keep a different application in each window.
APPLE HAS FINALLY GOT THIS DOWN!
I don't know if this will all be saved if I restart, but I imagine something this well thought out will.

Your "solution" makes no sense, and seems quite unfeasible from an "across-the-board" stance; I find it hard to believe that Apple would deliberately remove a much-used feature from an existing OS in order to coerce users to purchase some unwanted peripheral device. I use the Magic Mouse (which, incidentally, supports the multiple gestures used in a TrackPad) with my iMac, and the trackpad on my MBA. On neither computer do I wish to swipe—multiple fingers, or just one!—across my mouse/trackpad just to find out which Space/Desktop I'm currently using.

I could be incorrect (that has happened more than once in my life), but I have a tendency to believe this was simply an oversight in developing—and promoting—Lion that Apple just didn't realize the demand for. To be honest, I had used my iMac for well over a year without making sense of "Spaces" before a friend explained to me what Spaces was, and how he utilized it. Once I discovered the joy of using Spaces, I was hooked, and quickly incorporated all four separate Spaces for different applications.

Couple months later, I "upgrade" to Lion, only to find out that they've revamped one of the coolest features SNL had, and I have to learn something all over again?!! Did someone from Microsoft infiltrate the Apple OS development team? This is sooooo much like something you'd see in Windows, it's incredible...and not in a good way. :mad:

Hey, Apple...if you're listening, we want our Spaces back, and we want the menu bar icon visible again!

PS: I actually purchased a TrackPad for my iMac; used it for a day and returned it. I couldn't stand it. A trackpad is great for a laptop, but my brain doesn't function that way when using a desktop computer. So, again, your answer seems to make absolutely no sense from a business standpoint. I can't see Apple alienating many in the hopes of convincing a few.
 
Use F5 or F6 to bring up Mission Control

My mini was on Snow Leopard but got the latest Mac at work and wanted to get to multiple screens a la spaces using Screen sharing. It didn't like my CTRL-<right arrow> etc because it would just change spaces locally. If you set up Mission control to be launched from F5 or F6 though instead of CTRL-up arrow (since they're not assigned to any other Mac special handling) that will bring up your Mission Control and you can click on the window you want.

Yah, about 4 years late to the game.
 
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