Originally Posted by Ulukia

1) No, it was designed this way. Most of the programs, at least standard programs, should already be inside of specific folders. The idea was to keep the application page neat and organized.

2) One way would be to move each application manually out of that folder (Highlight Application Icon, Menu, select Move, move Application Icon to folder, press in on Trackball to accept move) or I can create a custom version without folders.