Hi,
we had yesterday a chat with several people from this list (Aaron, Daniel and me, for the most time).
At first sorry for suddenly leaving in the middle of the discussion, I lost internet connection...
Some things were agreed by all present: the icon does not belong into the content box and the box that opens in "Jörgs Design" should not move, but overlap the text.
By the way: Duesentrieb has programmed and extension that (when using LANGUAGE_SELECTOR_INTO_TITLE) optionally injects an element into the title: http://www.mediawiki.org/wiki/Extension:LanguageSelector
So maybe we can have a look at his code? However I wasn't able to get this particular inject option to work (it just displayed the raw HTML in the title).
Another thing I like at Duesentriebs extension: He provides several GUI alternatives for injecting the extension into the page. I think his configuration scheme is quite nice.
Cheers, Arnomane