I quickly cobbled together a tool that can be used to visualize the content of the directory its run in. However, my C# is sorely lacking in modifying the code for it to become something like a shell replacement. I invite people to download the code and experiment with it: maybe you can finish what I started.

http://www.wolfsheep.com/uploads/Programming/Assorted/VisualFile_0.1.zip

(cross-posted to relevant areas)