I was trying to create a shared directory, where only the individual [leaf] files are fully editable by people with whom I'm sharing, not the directory structure:
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I shared foo/ as read-only and then gave full permission on each of the files, but for my collaborators this resulted in "Shared with me" showing foo/ and all of the individual files in a long list, rather than only foo/ itself. It was still possible to drill down into foo/ to get to files, but this approach is confusing, since they look like different files to the user, even though they are the same file. Further, it defeats the purpose of putting the documents into a folder in the first place, since I was trying to avoid cluttering up "Shared with me". My only option was to share foo/ with full access.
Perhaps I am missing something or there is another way to achieve what I want, but if not it would be nice to simply have "Shared with me" not show documents that are already contained in shared folders.