Deeply nested Fields + sidebar expansion readability issue

I feel like the side panel is a poor place to put Options/Fields. There are some scenarios where I have deeply nested fields (see attachment). The UI becomes progressively more difficult to use since the real estate for fields shrinks.

Two solutions to solve this:

1. Make side panels expandable (doesn't totally solve the problem)

2. Allow for different side panel arrangements ie a 2/3 panel option

I'd love to see a solution for it soon if possible. :-)