Red Sweater Software founder and über-geek Daniel Jalkut found that the loss of a keyboard shortcut to display or hide the active downloads list in Safari (Command-Option-L) was driving him bonkers -- he wasn't alone, as Erica pointed out the same annoyance. Like a good developer, he figured out a way to bring back the shortcut.
The solution was to use his FastScripts application (Free for up to 10 shortcuts, US$14.95 for unlimited shortcuts) and then develop a "simple UI Scripting script." The script, available here, is placed into the [Home] -> Library -> Scripts -> Applications -> Safari folder, and it appears in FastScripts only when Safari is active.
Now you can toggle the downloads list as much as you want with Command-Option-L. Be sure to send Daniel a thank-you tweet -- he's @danielpunkass on Twitter.