Nice implementation and it's nice that it has the same output as "dir". My only grep is that it can be somewhat slow when you're recursing through really dense file structures. This could be my file system or the fact the implementation is pure MATLAB, which is nicely portable, but it would be nice to parse sections out to an option mex file for extra speed.
A favorites list is a great idea and I'm working on it. Also, you're right that the recent list fills up fast with intermediate folders so I've decided to put only destination folders in that list; I think that would be more useful. Thanks for the suggestions!
@Charles: About using "c" instead of "m" - have you tried other submissions, providing similar functionality? Have you tested their performance? As far as I can remember, when I was looking for such a function some time ago, I noticed many "m" implementations were quite slow. Most of them are quite unstable as well. I was happy to find this one - fast and quite reliable. Probably the best of it's kind for Matlab. It's still not perfect, for example, see my comments below. I've voted "5" because it's better that others, not because it's "perfect".
I do strongly agree that it's ridiculous that programmer should think about these things when using such a high-level language.