Answering my own question as I finally found the missing piece.
The MenuTree target does get decomposed to the :folder and :featureView. If the target is:
/ignition-101/perspective-features/native-app
Then in the Perspective page configuration the “/ignition-101” maps to the page, and “perspective-features” is mapped to :folder and “native-app” is mapped to the :featureView. What I overlooked was that this is use to select the Primary View of “landing-page” (where the magic happens)
This view has the previously mentioned parameters of folder and featureView, which receive the matching URL parameters. But what is crucial is that “landing-page” contains a single embedded view “mainView” that has a defined binding.
And this binding takes the View parameters of folder and featureView and uses them to dynamically create the path that mainView should display. And that was what I was missing.