Fully agree with this. The functionality already exists in compact relation views, I would think it would simple to bring it to the main section.
Adding that option to fields across the entire entity view could be the first step to conditional visibility (bc formulas more complexity) that would already reduce mental load for fields that are not relevant if empty.
Example:
As role x, i will never be assigned as owner of a client. Hence, on my user page, that value will always be zero. It is not relevant, is always empty, and should therefore be hidden.
Another example: people with no permissions to a relation should not see the multi-relation. But I tested this with compact relation, and it doesn’t seem to work because of this: Do not show number of relations when people do not have access
I suspect that under the hood the relation view is not really empty due to seeing this:
So this would need some fixing before it would work for permissioning I presume.
Edit:
TIL that when you hide things on the top section or right section it adds a dropdown with “1 More” to see the hidden fields. Where Pinned fields hidden when empty do not. I personally do not like that behaviour as it adds even more clutter. One more thing a user can do. Maybe a toggle in setup? Show dropdown for “hidden when empty” fields?