Idea: Use two sidebars, one fixed to the left for formatting (never change its buttons so users don't get lost), one to the right that changes based on probable actions like working with tables as soon as you enter a table, or image manipulation, etc.

Leave just the menu on top for more vertical space for the document.

I'll use that.

ps. resize toolbars and use small icons when using monitors with resolution less than 1024x768.