It doesn’t seem to have any effect (at least on Windows).
Hmm… Why?
I wouldn’t mess with that, personnally.
Who knows what and when it’ll happen.
If you don’t want to see it, have Windows (or whatever the OS, if doable) not display files’ extensions.
That won’t hide the extension on the folder, because a folder is not a file.
Right.
. . . . . . . . . . .
Removing the .scriv may or may not have an effect now–offhand I can’t think of any, but then again, how would I know, as all my project folders are appended with .scriv? 
But even if it’s okay now, maybe it won’t be okay after some future update.
Couple other things to consider: The easiest way to find all your Scriv projects is by searching for *.scriv. Anybody who provides you support is going to expect your project folders to be MyProj.scriv.
Like @Vincent_Vincent, I’m curious about your “why”. Where’s the benefit here?
Best,
Jim
Links to documents probably won’t work, or at least the pre-existing ones, for starter.
(I am not testing anything. – I don’t see the point.)
If the project is ever moved to a Mac system, Mac OS might fail to recognize it as a project.
On Windows, I’m not aware of any consequences, but also am curious to know why you want to.
One effect would be, you wouldn’t be able to rename your project from File Explorer, e.g. when you rename the folder name of the .SCRIV folder and access the .SCRIVX file (still with its old name) within it and launch the file, the project auto inherits the new name from the folder, in effect, renaming the .SCRIVX filename as well.
If you don’t like seeing the extension, park your projects in a Scrivener sub-folder of Documents. It’s tidier that way anyway.
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Personally I wouldn’t want to do this, because it would lower the threshold for warning oneself that the contents of the folder they are entering should not be tampered with, other than double-clicking on the .scrivx file. If all of your Scrivener projects look like ordinary folders, it requires you to be more mentally vigilant, at all times, whenever navigating into folders, and looking for naming schemes, pattern matching, every single time, cautioning yourself: does this look like a Scrivener folder? And if so, backing out.
Further to that, I prefer dragging a shortcut of the .scrivx file to a central place where all active projects are listed. I never even see the folders on a regular basis. There is also the Favorite Projects list in the file menu, but that only works once you have another project open.
There is a fail-safe in the Mac version, to keep things sane. If you try to load a .scrivx within a folder that isn’t marked as ‘.scriv’, and that otherwise resembles a project folder, it will offer to add it back in a dialogue and continue loading, or cancel loading and leave it alone.
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no Mac, and I can still search for the .scrivx files in Everything. Renaming is a pretty good reason though.