I find it bit confusing.

Note that New > Directory and New > File differ because the New > File actually behaves like Edit command, where you can manually specify name of the file to edit. Creating new file is just a side effect of typing name of non-existing file (I'm aware that this is bit confusing too). While New > Directory really just creates directory.

It's the same idea as with files.

Let's say I have a bunch of directories that contain localization data, named "sitelanguage-en", "sitelanguage-de", "sitelanguage-fr", etc. etc. and I want to create a new one. My cursor is already over one of them so I press F7, and I only need to change the last two letters to create "sitelanguage-pl" or something.

Sorry, I do not find it that good. Can you give me a use case?

+1 for this suggestion for directories, good idea!

:mrgreen:

Can this be extended to F7 (New Directory) as well?

Thanks for your suggestion.

This request has been added to the tracker:
https://winscp.net/tracker/873

Just a quick idea: what if pressing Shift-F4 would automatically fill in the new file name from the file under the cursor? Total Commander does this and it greatly speeds the working process up, because often you just want to create a new version of some file you're currently working with.