If a layer is hidden, then we should have the option for the objects on that layer to also be hidden in the object palette.
The object palette could be greatly reduced in a flash, having only the objects of "visible" layers.
Interesting idea. But I think I'd prefer to reduce the complexity of palette information via palette filters.
This is how the filters function in Modo. The naming conventions are obviously pertinent to the Modo contexts but I think something similar would be welcome in FormZ.
Filter by 'geometry type', 'material', 'visible layers', 'hidden layers' etc.
But a possibility could be to integrate to two workflows. When hiding a layer in the layers palette you're given the option to create a filter set that will hide the the 'hidden layers' in the object palette at the same time.