The ability to hide the “Library Scripts” is long overdue, and I’ll let you in on the dirty little secret: it’s not there yet because I have a more ambitious plan. I thought it would be better to give users the option of including or excluding whichever script paths they like. For instance, I sometimes need to use a directory full of testing scripts that are otherwise not applicable. For this reason, I implemented a feature (works today!) that can achieve what you want, but unfortunately it has no UI. This is of course, really silly, and I should add a simple “Hide Library Scripts” option if I’m going to take much longer finishing the more ambitious plan.

For the time being if this feature is important you can set a defaults value from the Terminal. More information in the very last item on the FastScripts FAQ page.

Also, have a close look at the icons for shell scripts. Somehow they look a lot better in Apple’s menu (perhaps an issue of scaling down the large icon vs using a small design size?).