When I have the size to fit vertically option checked, the contact list will grow to fill the screen top to bottom. This is fine until is goes behind the dock. Then that portion of the list is not accessible. The size to fit vertically growth should stop when it hits the dock.
At the screen edges it goes to the bottom; anywhere else it stops at the dock. This is a compromise, as most people do not have docks which extend to the edges of their screens.
I guess that's the problem here, my dock does generally go all they way across the bottom of the screen. Seems if the list stopped at the dock, no matter where it was that would work inall cases. If the dock didn't go to the edge, the list could go all the way down. If it runs into the dock, it stops.
That would certainly be optimal. Apple in its infinite wisdom does not seem to think any application should ever care how big the dock is... I'm not sure where you might make your voice heard to Apple, but that's who'd need to make a change.