It is actually fluid.
But all properties, including "fluidity", have some domain where they are applied. It is apparent that when the client with of a window becomes smaller than some critical size, fluidity would fail. Take a normal physical liquid. If you make the vessel narrow and narrow, strong capillary effects start to dominate. And when you make your container close to the molecule size (yes, sometimes it's possible), the substance essentially looses its normal "3D" (bulk) fluid properties.
However, there is something wrong with your observation, as far as I can see it on your picture. I just tries to resize this page using "fluid". I successfully resize it to the size where the width of the bounding rectangle of this edit area becomes about some 5 em. The column on right remains of the same width. When the size is more than that, I observe perfect fluid behavior.
Try to disable all cookies for this site, set fluid and try again. I'm asking you to do so because I observed some glitches related to cookies. If you see problems or different behavior, please report your observations in detail here:
http://www.codeproject.com/suggestions.aspx[
^].
[EDIT]
My more detailed observations are shown in my comment below. Now I think that our observation match and the behavior is reasonable enough. You just need to scroll in both directions, to see how this layout works. Maybe it could be improved, but I don't see any faulty behavior. You can understand it in this way: the term "fluid" is related to the layout of the columns below the horizontal top strip.
—SA