The original poster is right and has been the entire time. This function no longer works for Finder.
I hung on to Snow Leopard for as long as I could with my early 2011 MacBook Pro, which was actually fitted for Lion. I heard a lot of stuff about post SL OS' being worse and so waited. However, I had to upgrade for my startup to be current with everything/everyone else. I downloaded Mavericks two days ago and had to do a reinstall the next day because of a weird error I got after trying to repair permissions (Unapproved Caller. Security Agent May Only Be Invoked By Apple).
THE FIRST THING I NOTICED THE FIRST TIME WAS THAT THIS FUNCTION WAS GONE IN FINDER. It was and is still gone after the second install. My Mac wouldn't load the OS after the error and I did about everything suggested here that could have brought the function back, short of opening it up (NVRAM, SMC, Safe & Verbose Mode, Single User, Terminal, Permissions, Disk Utility, etc. and reinstalling the OS), including messing with the System Preferences.
Most people with organizational skills, or the need, will find this is a problem, if not unacceptable. I have many folders; FOLDERS WITHIN FOLDERS WITHN FOLDERS (within folders). The swipe thing is the only thing that will stop me from going insane from the realization of how much a MASSIVE WASTE OF TIME using finder arrows are. I will definitely have to download one of those apps, especially if they offer additional functions.
I understand those willing to stick to principle, I'm usually like that with everything, but you can still feedback, write Apple, and protest while using an app to preserve your mood/sanity.
Mavericks is full of a lot of crap. All its iWork apps and Preview are TOYS and should have included a complimentary lollipop, bottle, or pacifier. I had to revert to previous versions with iWork but couldn't with Preview. Preview has really got me up in arms over its reduction in quality and functions. WHY? JUST WHY? There's just no REASONING behind all of this. Yes Mavericks does introduce new stuff coming from Snow Leopard, but why get rid of functions that have worked well, that your customers liked, and even needed, and replace it with NOTHING, or worse, TRINKETS?!
I think we should do more than feedback. I think perhaps a protest outside 1 Infinite Loop Drive with placards showing an X over a trackpad and Finder would be the only appropriate response for such blatant erasure of quality functions without even a memo to loyal customers who actually have BELIEVED in Apple. Okay maybe kidding, I mean people are dying from aluminum dust (maybe we could just tack that on), but seriously??????