--- a/browser/base/content/browser-customization.js
+++ b/browser/base/content/browser-customization.js
@@ -12,19 +12,16 @@
  * events.
  */
 var CustomizationHandler = {
   handleEvent(aEvent) {
     switch (aEvent.type) {
       case "customizationstarting":
         this._customizationStarting();
         break;
-      case "customizationchange":
-        this._customizationChange();
-        break;
       case "customizationending":
         this._customizationEnding(aEvent.detail);
         break;
     }
   },
 
   isCustomizing() {
     return document.documentElement.hasAttribute("customizing");
@@ -49,20 +46,16 @@ var CustomizationHandler = {
     // can cause the customize tab to get clipped.
     let tabContainer = gBrowser.tabContainer;
     if (tabContainer.getAttribute("overflow") == "true") {
       let tabstrip = tabContainer.mTabstrip;
       tabstrip.ensureElementIsVisible(gBrowser.selectedTab, true);
     }
   },
 
-  _customizationChange() {
-    PlacesToolbarHelper.customizeChange();
-  },
-
   _customizationEnding(aDetails) {
     // Update global UI elements that may have been added or removed
     if (aDetails.changed) {
       gURLBar = document.getElementById("urlbar");
 
       gHomeButton.updateTooltip();
 
       if (AppConstants.platform != "macosx")

--- a/browser/base/content/browser-places.js
+++ b/browser/base/content/browser-places.js
@@ -1190,68 +1190,37 @@ var PlacesToolbarHelper = {
     if (!toolbar || toolbar.collapsed || this._isCustomizing ||
         getComputedStyle(toolbar, "").display == "none")
       return;
 
     new PlacesToolbar(this._place);
     if (forceToolbarOverflowCheck) {
       viewElt._placesView.updateOverflowStatus();
     }
-    this._shouldWrap = false;
-    this._setupPlaceholder();
   },
 
   uninit: function PTH_uninit() {
     CustomizableUI.removeListener(this);
   },
 
   customizeStart: function PTH_customizeStart() {
     try {
       let viewElt = this._viewElt;
       if (viewElt && viewElt._placesView)
         viewElt._placesView.uninit();
     } finally {
       this._isCustomizing = true;
     }
-    this._shouldWrap = this._getShouldWrap();
-  },
-
-  customizeChange: function PTH_customizeChange() {
-    this._setupPlaceholder();
-  },
-
-  _setupPlaceholder: function PTH_setupPlaceholder() {
-    let placeholder = this._placeholder;
-    if (!placeholder) {
-      return;
-    }
-
-    let shouldWrapNow = this._getShouldWrap();
-    if (this._shouldWrap != shouldWrapNow) {
-      if (shouldWrapNow) {
-        placeholder.setAttribute("wrap", "true");
-      } else {
-        placeholder.removeAttribute("wrap");
-      }
-      this._shouldWrap = shouldWrapNow;
-    }
   },
 
   customizeDone: function PTH_customizeDone() {
     this._isCustomizing = false;
     this.init(true);
   },
 
-  _getShouldWrap: function PTH_getShouldWrap() {
-    let placement = CustomizableUI.getPlacementOfWidget("personal-bookmarks");
-    let area = placement && placement.area;
-    let areaType = area && CustomizableUI.getAreaType(area);
-    return !area || CustomizableUI.TYPE_MENU_PANEL == areaType;
-  },
-
   onPlaceholderCommand() {
     let widgetGroup = CustomizableUI.getWidget("personal-bookmarks");
     let widget = widgetGroup.forWindow(window);
     if (widget.overflowed ||
         widgetGroup.areaType == CustomizableUI.TYPE_MENU_PANEL) {
       PlacesCommandHook.showPlacesOrganizer("BookmarksToolbar");
     }
   },

--- a/browser/base/content/browser.js
+++ b/browser/base/content/browser.js
@@ -1706,17 +1706,16 @@ var gBrowserInit = {
         UpdatePopupNotificationsVisibility();
       }
     });
 
     window.addEventListener("mousemove", MousePosTracker);
     window.addEventListener("dragover", MousePosTracker);
 
     gNavToolbox.addEventListener("customizationstarting", CustomizationHandler);
-    gNavToolbox.addEventListener("customizationchange", CustomizationHandler);
     gNavToolbox.addEventListener("customizationending", CustomizationHandler);
 
     // End startup crash tracking after a delay to catch crashes while restoring
     // tabs and to postpone saving the pref to disk.
     try {
       const startupCrashEndDelay = 30 * 1000;
       setTimeout(Services.startup.trackStartupCrashEnd, startupCrashEndDelay);
     } catch (ex) {

--- a/browser/components/customizableui/content/panelUI.js
+++ b/browser/components/customizableui/content/panelUI.js
@@ -252,22 +252,16 @@ const PanelUI = {
     return new Promise(resolve => {
       this.ensureReady().then(() => {
         if (this.panel.state == "open" ||
             document.documentElement.hasAttribute("customizing")) {
           resolve();
           return;
         }
 
-        let personalBookmarksPlacement = CustomizableUI.getPlacementOfWidget("personal-bookmarks");
-        if (personalBookmarksPlacement &&
-            personalBookmarksPlacement.area == CustomizableUI.AREA_PANEL) {
-          PlacesToolbarHelper.customizeChange();
-        }
-
         let anchor;
         let domEvent = null;
         if (!aEvent ||
             aEvent.type == "command") {
           anchor = this.menuButton;
         } else {
           domEvent = aEvent;
           anchor = aEvent.target;

--- a/browser/components/customizableui/test/browser.ini
+++ b/browser/components/customizableui/test/browser.ini
@@ -96,18 +96,16 @@ skip-if = os == "linux" # Intermittent f
 [browser_948985_non_removable_defaultArea.js]
 [browser_952963_areaType_getter_no_area.js]
 [browser_956602_remove_special_widget.js]
 [browser_962069_drag_to_overflow_chevron.js]
 [browser_962884_opt_in_disable_hyphens.js]
 [browser_963639_customizing_attribute_non_customizable_toolbar.js]
 [browser_967000_button_charEncoding.js]
 [browser_967000_button_feeds.js]
-[browser_968447_bookmarks_toolbar_items_in_panel.js]
-skip-if = os == "linux" # Intemittent failures - bug 979207
 [browser_968565_insert_before_hidden_items.js]
 [browser_969427_recreate_destroyed_widget_after_reset.js]
 [browser_969661_character_encoding_navbar_disabled.js]
 [browser_970511_undo_restore_default.js]
 [browser_972267_customizationchange_events.js]
 [browser_973641_button_addon.js]
 [browser_973932_addonbar_currentset.js]
 [browser_975719_customtoolbars_behaviour.js]

deleted file mode 100644
--- a/browser/components/customizableui/test/browser_968447_bookmarks_toolbar_items_in_panel.js
+++ /dev/null
@@ -1,66 +0,0 @@
-/* This Source Code Form is subject to the terms of the Mozilla Public
- * License, v. 2.0. If a copy of the MPL was not distributed with this
- * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
-
-"use strict";
-
-// Bug 968447 - The Bookmarks Toolbar Items doesn't appear as a
-// normal menu panel button in new windows.
-add_task(async function() {
-  await SpecialPowers.pushPrefEnv({set: [["browser.photon.structure.enabled", false]]});
-  const buttonId = "bookmarks-toolbar-placeholder";
-  await startCustomizing();
-  CustomizableUI.addWidgetToArea("personal-bookmarks", CustomizableUI.AREA_PANEL);
-  await endCustomizing();
-
-  await PanelUI.show();
-
-  let bookmarksToolbarPlaceholder = document.getElementById(buttonId);
-  ok(bookmarksToolbarPlaceholder.classList.contains("toolbarbutton-1"),
-     "Button should have toolbarbutton-1 class");
-  is(bookmarksToolbarPlaceholder.getAttribute("wrap"), "true",
-     "Button should have the 'wrap' attribute");
-
-  info("Waiting for panel to close");
-  let panelHiddenPromise = promisePanelHidden(window);
-  PanelUI.hide();
-  await panelHiddenPromise;
-
-  info("Waiting for window to open");
-  let newWin = await openAndLoadWindow({}, true);
-
-  info("Waiting for panel in new window to open");
-  let hideTrace = function() {
-    info(new Error().stack);
-    info("Panel was hidden.");
-  };
-  newWin.PanelUI.panel.addEventListener("popuphidden", hideTrace);
-
-  await newWin.PanelUI.show();
-  let newWinBookmarksToolbarPlaceholder = newWin.document.getElementById(buttonId);
-  ok(newWinBookmarksToolbarPlaceholder.classList.contains("toolbarbutton-1"),
-     "Button in new window should have toolbarbutton-1 class");
-  is(newWinBookmarksToolbarPlaceholder.getAttribute("wrap"), "true",
-     "Button in new window should have 'wrap' attribute");
-
-  newWin.PanelUI.panel.removeEventListener("popuphidden", hideTrace);
-  // XXXgijs on Linux, we're sometimes seeing the panel being hidden early
-  // in the newly created window, probably because something else steals focus.
-  if (newWin.PanelUI.panel.state != "closed") {
-    info("Panel is still open in new window, waiting for it to close");
-    panelHiddenPromise = promisePanelHidden(newWin);
-    newWin.PanelUI.hide();
-    await panelHiddenPromise;
-  } else {
-    info("panel was already closed");
-  }
-
-  info("Waiting for new window to close");
-  await promiseWindowClosed(newWin);
-});
-
-add_task(async function asyncCleanUp() {
-  await endCustomizing();
-  CustomizableUI.reset();
-});
-

--- a/browser/components/customizableui/test/head.js
+++ b/browser/components/customizableui/test/head.js
@@ -300,17 +300,17 @@ function promisePanelElementShown(win, a
 }
 
 function promisePanelHidden(win) {
   let panelEl = win.PanelUI.panel;
   return promisePanelElementHidden(win, panelEl);
 }
 
 function promiseOverflowHidden(win) {
-  let panelEl = document.getElementById("widget-overflow");
+  let panelEl = win.PanelUI.overflowPanel;
   return promisePanelElementHidden(win, panelEl);
 }
 
 function promisePanelElementHidden(win, aPanel) {
   return new Promise((resolve, reject) => {
     let timeoutId = win.setTimeout(() => {
       reject("Panel did not hide within 20 seconds.");
     }, 20000);