For that reason, it would be useful to choose colors for folders in the Edit menu.
There’s no need to have a color picker for this. Instead it can be list colors which you can select, similar to how Google Drive lets you select colors for folders:
I would very much like this feature as well - but I would like to expand on the idea a bit, it would be really neat if you could customize the folder icons also
In my opinion there is a better way to solve this problem. I wrote more about the idea here but in brief we get rid of folder icons altogether and instead use shading for a folder visual cue. Bookmarks have no such shading while folders do. In the below example, the three left items are folders while the rest are bookmarks. By using emojis as folder names, in whole or in part, you can get as creative as you want and save a bunch of space.
A lot of good ideas here for the bookmark folders.
Being able to change the bookmark folder icons, color or other ways to easily identify the folders.
Being able to list bookmarks under other bookmarks to create groups and get rid of the folders would also work for me.