I made this suggestion before on the insider-build channel, but soon understood that here is the proper place to do it. So here it goes:
It seems to me that, in line with other modern editors, as Silver noted, it would be a good idea for the collapse fold command to work anywhere in the text as a collapse enclosing fold command. Meaning this: if you hit the hotkey, the nearest fold above will collapse.
This would also make Obsidian behave more similarly to other outliners (like OmniOutliner).