You are rights. This has been fixed already.
WinSCP 5.2.3 beta with the fix will be released shortly:
https://winscp.net/eng/docs/history_old#5.2.3

Unless I'm going blind, the Local Directory option for stored sessions has disappeared. Please restore the configuration for local directories, or tell me where it is hidden. I've gone back to 5.1.6 because of this.

Oh, and I was also very comfortable with the tool bars (copy, delete, etc.) at the bottom and find them more difficult to access now. Please give us an option to place them either above or below the file windows.