Setting RowDefinition.Height ="Auto"
is not suitable for all cases, as often we want * sizing of our rows.
Rather than dynamically/programatically adding and removing rows from the list, it is easier and safer to stretch the first rows contents over the next row/s.
This can be done by using a DataTrigger to set Grid.RowSpan on the first item on the grid. Below is a complete example - just paste it into a new WPF window to see it in action.
<Grid>
<Grid.Resources>
<BooleanToVisibilityConverter x:Key="visConverter"></BooleanToVisibilityConverter>
</Grid.Resources>
<Grid.RowDefinitions>
<RowDefinition Height="*"></RowDefinition>
<RowDefinition Height="Auto"></RowDefinition>
<RowDefinition Height="*"></RowDefinition>
</Grid.RowDefinitions>
<Grid Grid.Row="0" Background="Orange">
<Grid.Style>
<Style TargetType="Grid">
<Style.Triggers>
<DataTrigger Binding="{Binding ElementName=toggle1, Path=IsChecked}" Value="False">
<Setter Property="Grid.RowSpan" Value="3"></Setter>
</DataTrigger>
</Style.Triggers>
</Style>
</Grid.Style>
</Grid>
<GridSplitter Grid.Row="1" ResizeBehavior="PreviousAndNext" HorizontalAlignment="Stretch" Height="3"
Visibility="{Binding ElementName=toggle1, Path=IsChecked, Converter={StaticResource visConverter}}"></GridSplitter>
<Grid Name="bottomGrid" Grid.Row="2" Background="LightBlue"
Visibility="{Binding ElementName=toggle1, Path=IsChecked, Converter={StaticResource visConverter}}">
</Grid>
<ToggleButton Name="toggle1" VerticalAlignment="Top">Hide/Show</ToggleButton>
</Grid>