Firstly, I thought your points were all well explained and to the point, and I have personally experienced many of them, and would love them to be fixed as soon as possible. But I take exception to a few of them:
The location bar can be used to move up a folder, but because you have to click on a different place depending on it's contents...
Actually, this has been improved over Vista. In Vista, if the current folder name was long enough, the parent folder button was not even visible, but they made the parent folder visible in 7. I actually like the fact that the address bar behaves like a breadcrumb, and I do not miss the up button. Backspace (or a fourth button on my mouse) helps a lot, though (i know it goes back, not up, but I do want to go back most of the time).
The arrow between the sections in the location bar allow you to navigate without using the treeview. Why though? As a means of navigation it is inferior in every way. And duplicative.
To this, I take serious exception. I love this feature, it is a great time saver when I am investigating a bunch of folders under the same folder. Lets me quickly jump from subfolder 'a' to a peer subfolder.
Clicking on the background makes the location bar revert back to a textbox so you can type a path in.
Well, maybe I am a keyboard junkie.. but I always ALT+D to get keyboard focus and ESC to get back to breadcrumb.