Bummers. Thanks for the info, Joemikeb.
I was hoping I could disable this default feature when having - and only wanting - one desktop in use with multiple windows because I do find that flipping to a second desktop is inconvenient at times.
The workaround would be for me NOT to use FULL SCREEN on any window (i.e. stay away from the green button!) Then, with multiple windows on the one desktop, I can re-size each window the "old-fashioned" way by dragging the corner. Just wish there were a way to set the FULL SCREEN mode to automatically disengage when I open a second window rather than have OSX automatically open a second FULLSCREEN desktop by default.
The "TOGGLE" idea you mentioned would actually be a solution in that it would reduce the number of steps to move in and out of FULLSCREEN (AT WILL) when one wants to use multiple windows at the same time on one desktop.
Perhaps some Whiz-Bang guy will come up with just this kind of "toggle" app.