I can see why this would have come up as an initial thought but I would say there are definitely reasons to hide a loan aside from trying to forget about it.
If I have set up scheduled payments to put money aside each month, and I know the loan is being paid off, then why shouldn’t I be able to hide it from a summary screen.
I am in that exact situation with a credit card I took a money transfer out on and which I now pay off by DD every month. I would love to hide it most of the time, exactly as you can pots and, crucially, exactly as you can with connected accounts on android, (I’m on iOS - parity wiki Android-iOS Parity Wiki) but then choose to show it and check in on it every now and then.
Customisation with restrictions isn’t really the same.