atm you always have to select a destination folder before you can extract. and maybe move the "browse to other folders..." part to the bottom of the combobox which holds the bookmarked folders. i'm not quite sure if this is actually better. pro: less cluttered extract dialog, because you can remove one line, that is always visible. contra (maybe): choosing another folder has to open a new dialog. some people might not like that. i think more opinions on this one are needed than just mine.
after giving it a little more thought, i think the "browse for other folders..." part is fine the way it is. but the first part of the request is still valid.
squeeze is not maintained anymore, closing.