What I am asking about is the ability to designate specific bags so they show in their own display.

Example: I merge the Backpack and the next two bags into one display, then bags 4 and 5 are split into their own display.

Is this something that could happen?

I don't happen to like one massive bag, just the way I store things. Splitting it up to two would be great for me.

Select the option "Bag Break" in the appearance section.. that makes them treat as separate bags

I get that. What I am looking for is two physically separate columns.

Two individual windows, one set to combine 3 bags, the other combines 2 bags.