In addition to Cory's suggestion on using the TAB key, pressing SHIFT+TAB hides the toolbar temporarily.
You can also turn off the display of mini toolbars on the General tab of the Editing Options dialog box.
The Feature Construction toolbar
Thanks for your feedback. In the next release of ArcGIS, we are looking at making the Feature Construction toolbar more effective and easier to use.
ArcGIS 10.1 is currently in beta, so I would encourage you to apply to join the beta program and let us know what you think: https://betacommunity.esri.com
Thanks Tim. This has been seriously bugging me since switching to 10. Why did ESRI think putting a toolbar in the way of making edits would help? They couldn't leave well enough alone?