In RCE you can right click a folder and get a delete option.
However the delete option only appears if there is content in the folder. This allows you to delete a folder and everything it contains in one shot.
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If a folder is empty, the delete choice does not appear. Meaning you can't delete empty folders, only folders that have something in them.
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This is incredibly dangerous. You should only be allowed to delete empty folders, not the reverse. (Also - the New Folder choice doesn't work on an empty folder. You have to create a report or dashboard first, then you can create a new folder.)