Agreed.
I put videos into independent folder. And didn't refer the generated thumbnails. But I personally wish it will be able to show customized thumbnails (or cover image). I'm more of using a folder.jpg file to represent a folder and put all relevant file like videos, subtitles and information (maybe tags) files in the same folder. I know someone assigning the same filename as the video file to be the thumbnail file. But I'm up for the folder way.