Hi,
in interface_templates.c, line 902, we check for "modifier_couldBeCage".
If this condition is false, we add a dummy place holder.
This place holder takes space and should be removed for modifiers, that don't have this "editing cage" at all. (like Mesh Cache, Physics...)
What is the correct flag to check this on? I tried some things, but they always failed for certain modifiers, and the gap was still there then.
Would give us some space :)