To install this package, run in Emacs:
M-x package-install RET visual-filename-abbrev RET
This minor mode abbreviates the directory part of filenames by using overlays. For example, a longish filename like /home/myuser/Documents/Letters/Personal-Family/Letter-to-John.tex will be displayed like this: /h…/m…/D…/L…/P…-F…/Letter-to-John.tex By default, the abbreviate display is disabled when point enters the overlay so that you can edit the file name normally. Also, abbreviated file names are only shown if the abbreviation as actually shorter as the original one (which depends on what you add as replacement). There's stuff to customize, just check `M-x customize-group RET visual-filename-abbrev RET'.