I agree that the folders are a bit useless and still buggy. One thing that DISH always falls short on is developing a "user centric" interface. Yes, it is nice, especially on the Hopper as compared to the prior receivers, but still could be easily improved. Make an option for list view instead of all the icons (it's already there in other areas) and groups within folders. Like the 722 had. All the icons building up are getting a bit annoying if you still view by user folders.
Instead of working on new apps and features, get the persistent bugs and interface requests fixed. The new users you are trying to capture with the new stuff will appreciate it.