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I am also struggling.

I really like the flippy triangle drilldown capability that folders provide, even for projects. But the process of creating a folder for each subproject is awkward (unless I've missed a quick way to do it, similar to indenting tasks inside a project in the outline view).

And I guess I don't understand why the software needs to make a distinction between Projects and Folders at all. It seems like they have all the same functionality requirements.