I rather expect the text snippets within the program code, perhaps called by ID's and delivered from a module that holds the localized texts. You could look at the contents of the Logic folder but I don't think you will find text snippets there. I may be wrong though.I bet there are wee files somewhere where I can modify the text, perhaps scripts?
You can hide the icons and still have the text remain. This definitely saves space.
But your second screenshot has no icons and is definitely less high than the first one. Why do you think this does not save space?it doesn't here, at least, not with the ones I use