Would I be correct to say that another way to provide what you want is if there was a “fade rest of model” tool that would act on all but a selected group or component the same way this option does during component edit?
I can see how that would be a handy feature, but I wouldn’t want to get rid of the bounding box during edit because that’s one of the main clues that a group or component is open for edit.
Still, I think it would be better if this dotted line did not exist anymore.
Anyway, something like a checkbox (like the image below, for example) can open for the user to choose and have more autonomy, and of course, with an option for “Please do not show me this again”, which can be deselected again in the SketchUp Preferences window.
You are entitled to your opinion, but I don’t agree. To me the bounding box outline is an important feature when editing a group or component. For example, it often reveals that there is some tiny edge or hidden geometry displaced from the visible geometry. I don’t see any merit to editing something with no bounds displayed. On the other hand, I can easily appreciate the value of the visual fade effect when not editing.
So, even if you can get rid of the dotted line box around the component/group that is open for editing, you would then need to make an image export to use in LayOut. This would eliminate the dynamic link from SketchUp to LayOut. I think it would be better to handle this sort of thing with scenes, styles and LayOut. It’s easily managed and changes are quickly and easily made without needing to replace images. And this option is available now. No need to hope for a new feature.