Just to add my vote that this (“sort files and folders alike”) feature would be really useful. I’m sure everyone has their own favourite example, but I thought the usecase described in Can I sort folders and files continuously in the tree view? particularly compelling.
This shouldn’t be an obstacle for Obsidian’s engineers, but everything I’ve read does say that Windows File Explorer still cannot do this. However, other navigators such as Double Commander implement alternative sorts like this through a user option (Options>Files views>Sorting directories: sort like files).
My own stopgap workaround for now is that every isolated markdown file gets its own folder (same-named only without the md extension). That makes for an extra setup step and then additional mouseclicks on each use, but multiply this by millions of users worldwide and it can’t be a good thing…