That is odd that it was defaulting to showing you the root directory, when used as a Batch Connect component it is intended to default to the home directory. In which version are you seeing this behavior?
As I mentioned in our other discussion yesterday I made a few changes and released version 0.3.0 which adds another way to specify the file system preferences, by adding a data attribute
file_picker_favorites. The format for the expected value is described here: https://github.com/OSC/bc_js_filepicker/blob/master/src/files_api.js#L61-L69.
If I have time I’ll look into adding an option that will only permit selecting files or directory, or files with certain extensions this coming Tuesday (I allocate Tuesdays and Thursdays for answering community questions).
As for whether the file picker will be integrated into the next major release of OnDemand: yes, I think that it or something very like it will be.