You can't hide folders, but you can hide individual images. Those images remain in the folders, but you can't see them until you un-hide them in the Hidden view. Choosing "Hide" just marks a picture as hidden-- it doesn't remove it from albums.
I think that I would create an album called My Hidden. I'd go to the Hidden view and copy all of those pictures to My Hidden. When they are marked Hidden, then the album will appear empty. I've actually done this, if fact. The idea is that I can un-hide the pictures in Hidden so that I can see what albums they're in, and then I can go to My Hidden and hide them all, again.
Then, if you want to never see Mark or Judy, you can go to their People Albums, select all, and copy them to a single Mark & Judy album--and hide them. They will disappear from all albums, including the Mark & Judy album. But, if you change your mind, you can go to the Hidden view, select all, un-hide, and then go to My Hidden, select all, and hide these non-Marks and Judys. Then only Mark & Judy would be left, still in all the albums they were in before, and visible again.
Wow, that's complicated. I did something like this on my Mac, but it has Smart Albums which makes this much easier. You will have to remember, if you hide more pictures, you need to put them in My Hidden, since it won't happen automatically.
Well, that's what I come up with. What do you think?