Well, it should look like that, but Honda and Toyota aren't visible. It actually looks like:
I've tried everything I can think of. Toggled the triangle next to "Cars". I selected "Show all checked" from the menu bar (even though I never checked Honda and Toyota). I selected "Uncheck All" from the menu bar. I've reloaded the Toodledo tab in my browser several times.
I know that Honda and Toyota still exist because my list still reports six items. And if I close the arrow next to "Cars", it tells me two items are hidden).
Also, if I create a new item (say, Ford) and drag it to "Cars", it disappears (but my item count increases to seven).