i don't want to be arrogant, but i think it's only fair that you run into these problems. it looks attractive, i know, hiding everything from the user that might be bothering to her. but with this approach it is you who has to bother: with all possible users and all their possible moods and knowledges! no programmer is god-like, and as far as i know about thinking processes in the W3C, there is no intention for the internet to behave god-like. (well, apart from steve ballmer and his consorts, who believe in and cultivate their customers' dumbness.)

as far as i know the "average" user, they can be divided roughly into two categories:

1.) those, who have no idea what's happening in front of them, who are capable of writing letters and emails and have no further technical understanding. most of them don't care about the text displayed in location bars, as they tend to some sort of beneficial ignorance: they don't care of what they don't understand.

2.) users with internet experience and affinity. they know what a location bar is for and that the text displayed in it is maybe useful for them, maybe not. these users will possibly be rather bewildered and get sceptical of a site, where they can surf and surf without a changing location.

personally i wouldn't trust such a website like yours. i would assume that there are things happening behind my back - which is exactly the reason why i'm a linux-user. ;)

so, after all your question is is more of a political than a technical one, but nice to discuss...