Just like ALL other DVS software, it will be cool and very useful to see folder and sub-folders content when clicking on a folder.
It's just cumbersome to switch between folders/playlists when we have a parent folder that contains everything when mixing open format.
It makes also the search faster and more limited when we know in which parent folder is the track.
You're asking about "recursive" playlist display; unfortunately rekordbox does not (yet) feature this, but it's on the list and we hope to see it in a future update. Thanks for the feedback.
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+1. I don't really see the point in folders otherwise.