See ticket 184
The feature which causes watched movies to disappear from the virtual (and real) directories is incredibly disconcerting to new users, and in cases where there are multiple users of a system. While it would be appropriate to use a different jewel color to indicate that a show is watched, its rarely appropriate to make a show disappear altogether.
This enhancement request is that there be an option that prevents the hiding of watched shows or movies from Sapphire.
I have read the manual, and am aware of the workaround. I still feel strongly that this functionality is highly problematic. I don't want my movies to disappear after I watch them, and I don't want to have to train every babysitter, friend or relative that comes to my house to mark folders as unwatched before they leave.