I think this has been mentioned before, but I guess the reason people (including me) would like to have the capability of scanning more than one sub level of the directory tree, is the Killlergorilla's preinstalled whdload packs. Those are organised like this:
A - A10 Tank killer - .slave
and so on...
It will/would be pretty complicated to organise the folder structure in a way that the "midle folder" (in this case A10 tank killer) would be removed and all the games would be under a certain alphabet.
Tiny launcher is an awesome piece of software
The scan speed and the overall quality is something I haven't seen in years for example among Windows/Appstore software
I really hope you'd find the "missing bits of code" somewhere gibs, to make tinylauncher KG whdload packs compatible