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If my project tree looks like this: src -> a -> b where "src/a" and "src/b" are my source folders, I would like to have an option to hide "src" from Package Explorer, if it is empty itself.
It's very unlikely that this will be implemented. You might want to give the Java Browsing perspective a try or add the Packages view to your current perspective.
Yes, I expected this to be not of any higher priority. Just thought, it might fit well into the picture, if something like an "empty parent packages" filter already exists, which is quite similar.