is there a way to create a notebook that at least will be created inside a notebook which has my cursor on it or have me choose the location/tree/hierarchy to place it in?
Nope, but I think Laurent would accept a PR for that. I believe this came up at one point in the past and he wasn’t against it.
It shouldn’t be too hard to implement. When you right-click on a folder and the context menu comrs up, the id is already known. Therefore using that id as the parent id would just be a different call to the function that creates the notebook.