It looks like Facebook is reacting to user feedback about how hard it is to find and navigate applications in the new profile design. In response last week they changed the application list so that the “browse all applications” actually connected you to all your applications. This week they’ve changed the application drop-down so that it displays a shortened application list. Unfortunately there doesn’t seem to be a way to configure which applications are displayed or easily get to any of your installed applications.
The other point of confusion with this design is the Facebook term change from “installed” application to “bookmarked” application. I don’t think they’ve done a job of explaining to users how these terms are essentially the same but “bookmarked” applications don’t automatically install a profile box. I’m hoping Facebook introduces a better definition.