Hi Shai,
Regarding the screen real estate, that is not issue because the Toolbar has the capability to scroll with the content off screen or hide. Also, SideMenu has scrolling capability.
If the Toolbar implementation can be adjusted to enable its commands to receive focus I'll be OK, else I have to for go the Toolbar API or create two versions of my app, one for touch devices and the other for non-touch devices which will not be a good choice for me.