Another significant downside of the folder-based Assistant is that recent threads/chats "disappear" once they're filed into folders, rather than being listed in reverse-chronological order in the sidebar as they were before (if I recall correctly).
If I have a large number of folders, it then becomes extremely inefficient to try to find the last thread I was working in, if I, for example, close the chatbot sidebar in Firefox, or close the Kagi tab.
The folders also don't seem to be sorted in any kind of intuitive way. Newly-created folders seem to appear at the bottom of the list when creating a new folder for an in-progress thread. Apart from that, they don't seem to be sorted in order of most-recently-used, or most-children. Even alphabetical seems preferable to however it works now.