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New to Lion when you sort a folder by "Kind" it groups file types together in a wonderful compact display with a "left-right" scroll capability if there are too man files/folders to display one line.

There is the "Show All" option at the top right of the Finder window. Is there a way to set "Show All" as default so I don't have to click it every time.

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I don't know any way to make that the default. But you can still use the views where items aren't grouped under the sections by setting Arrange By to none and selecting View > Sort By > Kind (the Sort By menu is shown while holding option). – ؘؘؘؘ Aug 16 '12 at 19:47

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