This is entirely by design. When you plug in a dongle for an OSMC remote (or you have a Vero V which has a dongle inside it) Kodi loads up a special keymap that has been highly tuned to this particular remote. This keymap can be disabled entirely, or alternatively, one can add in additional keymaps to further tune the controls to their preference. You can find out more in the following guide…
In your case the keymap you would add to your keymap folder would look like this…
<?xml version="1.0" encoding="UTF-8"?>
<keymap>
<global>
<keyboard>
<return>Select</return>
<return mod="longpress">ContextMenu</return>
</keyboard>
</global>
<Home>
<keyboard>
<return mod="longpress"/>
</keyboard>
</Home>
<FullscreenVideo>
<keyboard>
<return mod="longpress"/>
</keyboard>
</FullscreenVideo>
<Visualisation>
<keyboard>
<return mod="longpress"/>
</keyboard>
</Visualisation>
<MusicOSD>
<keyboard>
<return mod="longpress"/>
</keyboard>
</MusicOSD>
<slideshow>
<keyboard>
<return mod="longpress"/>
</keyboard>
</slideshow>
<VideoOSD>
<keyboard>
<return mod="longpress"/>
</keyboard>
</VideoOSD>
<Videos>
<keyboard>
<return mod="longpress"/>
</keyboard>
</Videos>
<VideoPlaylist>
<keyboard>
<return mod="longpress"/>
</keyboard>
</VideoPlaylist>
<MusicPlaylist>
<keyboard>
<return mod="longpress"/>
</keyboard>
</MusicPlaylist>
<FullscreenLiveTV>
<keyboard>
<return mod="longpress"/>
</keyboard>
</FullscreenLiveTV>
<TVGuide>
<keyboard>
<return mod="longpress"/>
</keyboard>
</TVGuide>
</keymap>
It does not seem weird to me to have the ability to quickly and easily cycle between showing only unwatched and all items in a library view.