There's two parts to this:
Ability to collapse and expand individual containers.
Nice to have:
Ability to collapse and expand everything in one go; e.g. adding 2 new options / icons in the panel with the zoom and 'full screen mode' links.
Ability to remember if containers were collapsed / expanded upon last save so that when flow is reopened it is in the same state I left it / saved it in.
This would be useful for large flows and people (like me) editing flow on a small laptop screen.
I see this working similar to code editors, where you can collapse and expand chunks of code.