If you decide that you don't want a folder in your library any more, it's easy to remove the folder.

Click on LW's Tools > Options. Click on the My Library icon.

You'll see the folders in your library listed. Click on 'remove' beside the folder that you want to remove. Click ok. The folder won't appear in My Library any more, but will still be saved on your hard drive.
Click on thumbnail to enlarge the image.