I might add a couple of notes.
(David - you can delete your duplicate posts that don't have a reply - see "delete" in upper right of the message)
FTM shows the button "glowing" or "highlighted" when the normal, FLAT VIEW, is turned on.
When you turn the "glow" off, the places will go to heirarchical view.
This seems to be counter-intuitive to me, (because I'm left-handed? Ha.), but that's the way it is.
Note also the two buttons to the right of the Flat vs Heirarchical View Button - expanded or collapsed buttons become "alive" when heirarchical view is on and are greyed out when heirarchical view is turned off.
To see the heirarchical view, you must go to a country (in my case England or the USA) that has resolved places.) Find that country in your list and expand it if the expand button hasn't already expanded it.
Note also the choice you have in the right panel:
Show people in that level for that place only (ie say only with the name of that county without a township), or
All levels at this level and below that level (ie all townships in that county plus all in that county without a township)
Also note a new icon has been added to left of the place names. A blank icon, which indicates the place was "half-a*s resolved - or bifurcated resolved. This applies, for example to cemeteries. With this new addition, we can now resolve cemeteries, churches in a place name by ignoring them when resolving. (Try to resolve to see how this is done.)
In my personal situation, I have found the heirarchical view limiting and don't use it, because it is limited to RESOLVED places (including the half-a*s resolved cemeteries) I use the index filter as an alternative to find people in a place and find it works for me most of the time.
The reason that it doesn't work for me is that there are many historical places that I will never resolve and will always be left out of the heirarchical view. Also, there are many places in my file where I try to resolve where a place is as I find them - but many are not worth the effort. For example, I just found an obscure reference in a county history book for an event that happened to an obscure cousin of mine in Canaan, Ohio. When I go to Wikipedia, here:http://en.wikipedia.org/wiki/List_of_townships_in_Ohio
I find four townships with that name in Ohio:
Canaan Township, Athens County, Ohio
Canaan Township, Madison County, Ohio
Canaan Township, Morrow County, Ohio
Canaan Township, Wayne County, Ohio
I simply don't have the time to track down which county this may be, and I may never have enough information to get the answer. So, "Canaan, Ohio" remains unresolved in my file - and won't appear in heirarchical view. But, I can find it with a filter.