I have some feeds in a folder from my Google Reader import, but now I’d rather have them all on the top level. If I delete the folder, does that delete the feeds inside it?
Yes, When you delete a folder, all the feeds within it are deleted as well. I deleted by mistake a folder with a lot of feeds in it once. It wasn’t a pleasant experience, let me tell you. I had to re-add those feeds from a backup.
Yeah, you’ll just have to move those sites to the top level manually. Deleting a folder really does delete its contents, just like in Finder/Explorer.