Public bug reported:

Compact icon layout feature was removed in Nautilus 3+. As I understand
it's design decision, but there is a problem that it causes if you want
to have launchers/icons on desktop. It is not possible to apply compact
view or any similar feature which delivers the effect close to original
compact layout. This makes nautilus nearly useless file manager for
handling the desktop, because launcher/icon labels are wasting too much
space and often collide with other launchers/icons sitting next on the
desktop.

I hope there are still people who use desktop for something more than
place for a wallpaper. It seems to be the trend with "modern" Linux DEs
- maybe because it looks better on screenshots. But it is actually
completely useless for work and I don't know why a file manager needs to
be used for handling a desktop, which can properly show only a wallpaper
anyway.

** Affects: nautilus (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/980625

Title:
  Missing compact icon layout option in Nautilus

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