I'm sure this is already been discussed at some point, but I haven't been able to find a thread, so I'm going to try to start one.
Currently, when you expand a folder in the folder tree and it only contains one sub folder, you also have to expand that sub folder. This should be handled automatically. All sub folders that contain only one subfolder should automatically expand all the way down until a folder contains more than one file and/or folder.
On that note, I have read other threads where people would like to be able to navigate the tree with the arrow keys. I +1 that also.