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I just wanted to provide feedback to you all, this is the reason I purchased the application. I'm not in love with the implementation, having to open a specific folder in sub-folder mode each time, but it works. 
What this functionality allows me to do is have FRV provide the limited DAM funcitonality that I need so that I no longer need to rely on a separate program. I manage my images through my own folder structure, and use ratings / labels to organize them for larger "collections". Adobe Bridge / Lightroom, etc.. have "smart collections" which allow me to say create a collection based on the "yellow" label, across an entire set of folders (or in the case of LR, a catalog).
Now with sub-folder view in FRV, I can choose my parent level directory and then filter all folders / images under that for the "yellow" label. 
 
I would really love to see a "smart collection" / "smart search" / "virtual folder" kind of implementation for this functionality. I don't necessarily want to use it when browsing images if I could instead just setup a standard metadata search at a directory + sub-directory level and assign it to a shortcut/folder/link, etc..