The current functionality provided by the connection search box is very basic and doesn't really work as one would necessarily expect. If I type a word which matches at least one connection's description, then only the first matching connection is selected "in the background" (the config panel shows the connection that was found, but if the config panel is hidden then you're working blind).
I propose the following:
1. Make the search box function as a live filter for the connections panel. As you type, all of those connections that have the search term appear anywhere in their name are filtered and displayed (along with their corresponding folder hierarchy).
2. The background colour of the connections panel changes to indicate that a filtered list is being viewed.
3. The search box also has a little 'X' which can be clicked to reset the search and return to displaying the full connection panel contents. Pressing Esc would do the same thing.