It would be nice to have 3 options for showing subfolders in the list view. Currently, when you select "Show SubFolder" you don't, in fact, see subfolders instead you see ALL tasks. This view serves a purpose but additional options would make the list view so much usable.
1) Show/Hide SubFolders - just showing the expanded folder hierarchy - no tasks
2) Show/Hide SubFolders and Tasks - showing folders and tasks within those folders as if they were created as nested subtasks instead. I would create them as subtasks, but this limits the roll-up option in the table view.
3) Show Tasks- this would be the current functionality