It’s important that it’s shown on every device, otherwise its presence is an indication that apps are hidden, and its absence confirms that none are hidden.
In violent or high control relationships, or in societies in which use of some apps could put a person’s life at risk, users can safely deny that they are hiding apps when the Hidden folder is always shown, regardless of content.
Personally, I don’t have a need for this, but I’m happy that it is shown so that it provides safety and privacy to other iOS users.