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Currently in Dolphin it allows you to set it so that when you are dragging some files, when you hover over a folder you can have dolphin navigate into the folder, with the files still selected

This can be a very useful feature, but as far as I know there isn't a way to move up the folder hierarchy with this method.

That's why I think that that a hover-able up one folder link should appear when using this feature.

What do you think?

It would probably just be easier to have you navigate to a folder in the breadcrumb address bar when you hover over it.

I thought that already happens... doesn't it? When you hover over a folder in the breadcrumb...
No... no, apparently not...

I just tried it in the breadcrumb (now that I found out what it was), it allowed me to drag the file into the parent folder, but with the navigate into hovered folder when dragging a file option enabled, it did not navigate into the folder.