Connected Projects are a great way to have a shared space between two separate Figma accounts (usually between two organizations). A drawback is that all the files are in a single project.
Without some kind of hierarchy (or filtered view) the Connected Project can quickly fill up with all kinds of working files, templates, older “archive” projects that are now needed only for reference, etc.
Figma could either extend the “connected” concept to the team level (so there can be more “folders” in the connected space), or provide some other kind of other hierarchical or filtered view.