Not sure if this is exact what I'd call a good tab-overflow solution...

Especially the way those 'N's showed up after I switched to the tab and remained when I switched away. And, I like the way it eventually can't make them any smaller so then it just runs off the right side. That also brings up the question: Really? This was the minimum size they picked??

But hey, at least there is that nice animation when they appear and disappear, which actually makes it fun to just hold down cmd-T (and end up with the above screenshot).