I hate this too. I have 6 accounts and previously I could see them all in the sidebar without scrolling -- this made for easy access to folders and subfolders; especially when drag/drop moving emails. I only keep a few key top-level folders in each account.
Now I have 36 additional folders showing (6 x Inbox, Drafts, Sent, Junk, Bin, Archive), even though I am using unified folders for these under the Favourites section. By toggling the unified folders open, I have access to individual account folders anyway. So these don't need to be shown unless you want them.
What I can't remember is whether Mail came this way in Catalina (and prior), or if it was a setting I managed to find. I've poked around and can't seem to hide these superfluous folders.
There's nothing wrong with wanting what works for you, when you manage several hundred emails in a day.
Give me back my screen real estate!