Nice. Although I do think it would be more user-friendly to have a separate option for it (the option could internally just modify the filter).

Nowadays, you can hide the folders using file panel filter | */:
https://winscp.net/eng/docs/ui_filter
https://winscp.net/eng/docs/file_mask

I would also very much like to see this option.

Thanks for your suggestion.
Will see if more people ask for this.

Please have option to hide directories from file panel when showing directory tree from both remote & local containers. This would be reduce redundancy and noise on screen! Awesome app btw, just started trying because FireFTP has been dropped from FireFox browser!! You hit the similar sweet spot of local & remote visibility of files & folders, functional capability, efficiency and simplicity of UI... Thanks ~Glenn