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Users always save inside this folder (probably because it's the first option to appear in the picklist when a folder to save in is being selected), so it's contents are messy and cannot easily be viewed by admins.

We'd prefer to have a single folder that everyone can save inside and view (all of the reports in these Personal folders can be stored under one category); is hiding the Personal folder from the users, or at least preventing it from being used, possible?

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Nope. All users that can run, create, and save reports can save into their personal folder. You might want to look for or submit an Idea for this.

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    I have checked that, user can create/run report and save reports without creating folder. "Create Report Folders" permission should not be given, Let me know if I missed something – Santanu Boral Apr 19 '17 at 17:29
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    @SantanuBoral All users have a "My Personal Reports" folder. Its' Salesforce ID is the same as the user's ID, and automatically exists. It cannot be created, deleted, or shared, and will not appear in administrative report reports. – sfdcfox Apr 19 '17 at 17:35

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