I participated in a related obsidian conversation on the subject a while back …
Convert exported bookmarks (HTML) into mindmap
Extracting the bookmark hierarchy/indentation is virtually impossible.
The “Export bookmarks to Markdown” chrome extension is handy.
“The point is that I’ve figured out that although I have many useful stuff there, I never use it because the system has friction as you have to wander around folders in 4/5 levels to find what you want.”
I find the Bookmark Manager Plus chrome extension invaluable for this.
I also use the Humble New Tab Page to have easy access to my bookmarks.
PS: The betterbookmarks_py Python script produces a foldable bookmarks file, based off a desktop chrome bookmarks.json file; need to see whether this script could be adapted for Obsidian use.