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Ah, I see the difference now. I have my tree.cfg file (and related config option mdl_tree_cfg_file) set to not have any columns shown. With it setup this way, the button is grayed out. Yes, I can see where it might be nice to have a bunch of columns pre-defined but not have them displayed until you push the button.
Looking in the knowledge base, it actually says this does not currently exist:
"There is no option to turn this toggle off by default, if request this functionality, refer to Product Ideas @ PTC Community"
Creo 9.0 saves the last state of the model tree column visibility into the .ui file, and restores the visibility status of those columns the next time Creo is started