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If the current selection (e.g. in the Package Explorer) is an IFolder or adapts to IFolder, then the "Import > Existing Projects into Workspace" wizard should pre-set the root directory to the given folder. When a project is selected, it's parent folder should be pre-selected. It's very likely that the user wants to import a project from the vicinity.
Discussed with Dani: Pre-setting a root directory is problematic, since this can result in a long search, especially with the "Search for nested projects" option. Another root directory that is often interesting is the current workspace directory (which is already available via Browse... button: it's the default directory there). To avoid cluttering the UI with more buttons, we could just add the workspace folder and the selected folder (if one exists) to the "root directory" combo's popup. That way, the user can quickly select the directory he needs from there.