viewing nested folders

Is there any setting I’m overlooking to be able to click on my Inbox and be able to view all files in the nested folders without having to open each one?

I don’t know any setting, but you could create a smart folder which searches in inbox and displays files of all types (or choose any condition which applies to all files). Smart groups will search recursively by default.

Regards,
Alex

Check out the View > As List view (cmd-2), and use View > Expand All (option-cmd-+) to show all folders and contents at all levels of nesting.