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Originally Posted by Toadling View Post
2) Leave the folder as visible in the sidebar but use "Group Projects by Folder" in the main content area (using the view bar). Each folder's contents are then represented in the main content area under a gray heading with the folder name. Folders without active projects don't get displayed at all.
Unfortunately, this workaround doesn't work well for me as I have folder hierarchy that creates context and because it flattens out your whole tree - you can't just fold the parent for the purpose of information hiding.

I 2nd the request to hide folders that don't have any active projects underneath.