Any idea that has received less than 5 kudos within 5 years after posting will be automatically declined.
In short: please show scrollbars on palettes in edit mode, allow us to resize the window - and autoarrange the items to fit in the new window frame - AND make it possible to select multiple items and drag & drop them to new locations on the palette.
My user palette in particular has a tendency to grow very large and untidy. In normal use you get scrollbars that allow you to navigate through large palettes, however if you want to arrange the items in a palette and go into edit mode you end up with a palette that spans several screens - with no option to resize it or scroll through it. Instead you have to move one item at a time, empty a row, delete it...and move you way meticously through it. There is no drag and drop support (well, unless you count the option you have if you select move from the contextual menu first, one item at a time), auto-arrange, or window scaling options.
Sure, you do not need to do this very often (although I often tend to repeat it after upgrading LV, which now means once a year...) - but that does not mean it should be allowed such a crippled user interface.
A summary of the issues is shown on the picture above.