Well, finally managed to get the test server up and running. Here's the new revised blizzard quest watch frame in action.
The drop down menu is shown when you right click the Objectives heading which also shows the total count of items being tracked. The new option element to widen the frame widens the frame immediately. So, the two screens show the two widths and the full height in normal blizzard UI.
Now to see how nUI works with it and then how my scrolling watch frame does