In general, if you design your security properly, you don't need to hide or remove rights any folder. The trick is to not grant more rights than desired at any point in the tree, and then users won't inherit unwanted rights from anywhere. Remember that seeing entries in the list is covered by "browse" rights, which are separate from "read" rights. So make sure you haven't granted browse permissions where you didn't want to.

Also, note that some privileges grant users the ability to browse all entries regardless of how entry access security is set up, and that users may be inheriting these from the everyone group.