A feature I would like to see on Nostr clients is, instead of mute, I just would like to hide notes from some profiles. Why? Sometimes I don't want to see some people notes, but I still would like to receive notifications if they interact with me.

I agree. I already called this out a couple of time in the past, a temporary (1 hour, 12 hours, 1 day, 1 week, 1 month, etc) mute function would be pretty useful.