Feature Description:

The proposal is to introduce workspace specific user settings. This would involve settings defined in the user's home folder, but are only activated for a specific workspace or folder. This feature is already present when using workspace files and the workspace settings are added to the workspace file. However, we might want to support the situation where the user merely has a folder open, and not force the user to use a workspace file.

The need for these settings stems from scenarios where there could be certain settings (examples include tokens, pythonPaths, etc.) that a user wants to be specific to a folder, but not added to the folder settings ((.vscode/.theia)/setttings.json) as they may be customized to the user's setup or even private.

On a similar note, it is suggested that we should consider splitting the workspace/folder features more clearly, as their current setup could confuse users. For instance, in the settings view, the folder settings ((.vscode/.theia)/setttings.json) are displayed under the tab workspace when only a folder is open, but under folder when a workspace is open.

This idea may need another issue to discuss it, but the points to be discussed in this issue are dependent on the outcome of this. The main ponder here is whether we want to encourage users to open a folder or if we want them to primarily use a workspace.