this is simple.. it is not the navbar you have to edit, but your headinclude...
see, you edited your headinclude and deleted the needed javascript to load the menu elements:
HTML Code:
<script type="text/javascript" src="clientscript/vbulletin_global.js?v=$vboptions[simpleversion]"></script>
<if condition="$show['popups']"><script type="text/javascript" src="clientscript/vbulletin_menu.js?v=$vboptions[simpleversion]"></script></if>