Changing Dovecot IMAP namespace & special use folder layout

I’m interested in getting mail clients to list mail folders so that Trash, Drafts etc. are not displayed as child folders of Inbox. Some clients like Thunderbird allow manipulating namespace or display branched folder layouts in an elegant way, while other clients make a mess of it.

The way I understand it, Dovecot’s default layout displays special use folders on the same level as Inbox instead of as child folders. But for a smoother upgrade or backward compatibility, it seems Dovecot on Interworx is configured with a Courier style folder layout (INBOX. prefix instead of empty; dot separator instead of slash and so forth).

I’ve tried changing these few lines in /etc/dovecot/conf.d/10-mail.conf like so:

mail_location = maildir:~/Maildir:LAYOUT=fs
namespace inbox {
separator = /
prefix =
inbox = yes
subscriptions = yes

But it didn’t work, perhaps because I was too chicken to experiment with /etc/dovecot/conf.d/15-mailboxes.conf.

If anybody has successfully changed Dovecot’s folder layout without mangling mail storage itself, I’d love to know how you did it.