I confirm this bug on Jaunty. Pidgin is not usable anymore if you don't
use a tray icon because "close" is now associated with "hide in the
tray" even if the tray icon option is not activated.
IMHO, it has nothing to do with the indicator applet.
** Changed in: pidgin (Ubuntu)
Status: New => Confirmed
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Cannot unhide Pidgin buddylist if not using Pidgin's "tray" icon in KDE
https://bugs.launchpad.net/bugs/333745
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