Is that a way by deleting a folder would delete all the content items and folders that associated with that folder?
At this time, this functionality is not included in the product. Recommended practice is to Purge all items from a folder, then use the Remove from Folder menu action to actually get rid of the folder.
If you use the Remove from Folder menu action before purging all of the child items, the children will NOT be purged, they will be orphaned (orphaned=not in a folder). Items that have been orphaned can be found in the Cx by searching for them by title or id, for example.