I have tried to adjust the prototype to make both parties happy, the path bar guys and the location bar addicts:

The path bar user interface looks as usual:

The location bar user interface is very similar, except that it has location entry widget instead of the path buttons:

And a third possibility, as suggested by Jeff, would be to disable the bar completely. This will make ROX users happy as well.

A tarball of the prototype with the stuff mentioned above is available here.