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The new implementation of the library view is a great improvement. However, it produces too many unnecessary levels of nesting. It should only create a new package in the UI if there are more than one sibling per level. If there is only one element per level do not create a new sub-level. This will save the user of doing too many unnecessary mouse-clicks, but retaining the same amount of structure. See attached screen shot: it should have created this hierarchy: core -> C.a.b giving C.a.b a plugin icon. Only if there is a sibling to a such as C.b should it create a package hierarchy.
Created attachment 61890 [details] lib