My sugggestion as a new version is comming is that when selecting to show a extended view (view with sub-folders) a parh column should be shown, that way you can see where the file is located and you can can sort the list after directory, that way files in the same directory is located together
I have managed it by making a custom column named "path" and I add the view with the custom column after I choose extended view, bur I think it should come up by default when dealing with extended views

Masteninja2