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The current dialog offers checkboxes, but it doesn't make sense to select more than one. Also, this unnecessarily introduces another layer of modal dialog.
Fixed in recent-ish releases (0.1.99, I think).
Oops, spoke too fast - what's happened in recent releases is that the modal dialog at least knows it needs a single project selection, rather than using a list of checkboxes that permits a multiple selection. So, we could consider this enhancement, but it's a bit debatable - the various JDT wizards like New Class, New Package, etc., all use the text field/browse button combination, so perhaps the current arrangement is more in line with what users will expect. Given that, I'm reducing the priority to P5.