That is the location field. I explained how when you asked here: Solarized theme? - #20 by Leo
No, it doesn't. It relates to how folders are displayed in the file display. As far as I can think, it does not affect the treeview at all.
A lot of settings related to more than one thing, so they can't "all be in one place", unless the same setting is in multiple places, which can be more confusing.
Someone might want to configure all their colors at once (quite likely). Someone might want to configure everything to do with the treeview at once, including its colors. It can't be perfect. That's life. (And yes, there are a couple of color settings that aren't with the others. We may move those over in the future.)
I don't have anything else to add on this topic.