Absolutely on this. It not only makes permissions management easier but it also makes it clearer what role folders play in the system and what their visibility to other users will be.
I need the ability for coworkers to update hosted feature layers that are located in a folder. Currently, I'm the only one that can see the folder (and the hosted feature layers that it contains) and update the feature layers. My coworkers cannot see the folder, so they can't update the hosted feature layers.
It seems if I could share the folder with my coworkers, then they'd be able to see the folder and its hosted feature layers, and then be able to update the layers.
this would be handy for exporting Survey123 reports and allowing others to access them without the need for each user to export them individually each using up credits