Couple of things I found (0.9-3):

As you might guess, I hand customized my menu (haven't had mymenu or categorize installed). So I already had custom icons and several .directory files (in .local).

1) Found my custom icons no problem. excellent.
2) Found my .directory files, read them, showed them in the list of folders, cool. Allowed me to edit my existing folders. It even kept my Category tags intact.

But it moved my Excludes up into the Includes, you may want to keep that in mind.

3) The select application list could benefit from a couple things:
Alphabetical sort
There are some items that have "NoDisplay=true" in the desktop file. These shouldn't be in the list.
Localization? for instance Media Player shows as mp_app_name in the list?


Otherwise, stellar effort liking it very much.

Other suggestions, I'll second removing already added apps from the list, make it easier to find recently insatalled apps. Add the ability to add apps on the main hildon.menu. I had a couple apps in front of my folders, now they're at the end.