Im one of those who use tons of time on my ui, every day. I like it very clean and what ive realized is that the chat boxes is one of the those things you really cant do anything about. Then i came up with this idea.
What about making a chatbox, which only was "1 line high", and then you mouse over it - it will pop up as many lines as you want, simply it will pop up the chatbox when you mouse over it. When you take your mouse away again, it will go to its orginal postion/state, a 1 one line chat box.
You'd have to do something like
2. Start a repeating event that checks if the mouse is on the ChatFrame1 using GetMouseFocus, and if it is then pop out the frame with SetHeight, and if not then shrink it with SetHeight.
And you'd need some magic to get the position right.