Tools overflow menu not scrollable

Since they were trying to help reduce the length of the original toolbar and make more tools commonly used more accessible, rather than as sub-tools, I don't think anyone probably considered a scenario as extreme as yours. I assume they thought most people would keep a lot of tools available whether or not they mouse or use KBSC. They'd then link the tools that are visible to the workspace — painting tools in view for painting, selection tools for a selection workspace, etc.

Good catch! I've used custom toolbars off and on for a long time now, but nearly to that extent, so never paid attention to the lack of scrollbars. Maybe now they know, they can add those scrollbars to the list and accommodate those who want to pare down the tools panel to minuscule proportions.

A partial workaround for now:
Within "Edit > Toolbar," drag your already-memorized (or rarely used) tools to the bottom of the Extra Tools list.

Actually, the Designer who came up with this feature specifically asked for the "One Tool to Rule Them All" scenario which Jeff describes and which does work fine on Windows.  Mac's screen real estate is more constrained (thank you, Dock), so the last ten or so tools just won't fit.  Unfortunately, getting 58 tools (you need to include Edit Toolbar) to fit vertically on a Mac display isn't easy, even if you move the Dock to the side.  A workaround that will help will be released soon, but on Mac the last two or three tools are still cut off.  A scroll bar on a tool box is liable to create a lot more friction that it solves, though Enabling Shortcuts for Hidden Toolbar Extras and then having two buttons on the Toolbar (with the VERY common tools in it, like Move, Brush, Type Hand, Zoom, etc) should solve the your problem.

Thanks,
David