Mine did! Looks like Blogger now adds the following line before </head> tag all by itself.
#navbar-iframe {display:block}
As
my display:none instruction was sitting before this line, it didn't
come into effect. I had to move the line right after body tag as
follows.
Go to edit layout for you blog. Now go to "Edit HTML" and select checkbox "Expand Widget Templates"
Now find <body> and put the following code after it. This code works fine with new design templates of blogger also.
<style type='text/css'>
#navbar {display:none};
#navbar-iframe {display:none;}
</style>
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