This would really help organize the space and easily get a zoomed out view and locate different layers nested within each other. Similar functionality exists in the Photoshop layers panel. Shortcuts like ctrl clicking a layer collapses all the nested layers within it. and Alt ctrl clicking collapses all the layers at once etc.
Shmuel Munitz
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This is a HUGE one for me. To both collapse and to expand all layer with a shortcut would be huge! So much of my time is spend opening and closing layers, since other functions like "find" doesnt provide an adequate enough alternative to finding stuff. Also i often find that it takes me forever to scroll to a different layer if i have lots of layers open - so i close them almost 1 by 1 between working on certain elements.