maybe selective-display? I have the following function bound to [f2]
;; http://emacs.wordpress.com/2007/01/16/quick-and-dirty-code-folding/
(defun jao-toggle-selective-display (column)
(interactive "P")
(set-selective-display
(if selective-display nil (or column 1))))
That's pretty bare-bones, though, and you'd really want it to be Pythony-indentation sensitive....
UPDATE: I was staring at this last night, and realized that I was tired of C-u entering the column I was on (plus 1).... so I coded it up:
(defun toggle-selective-display-column ()
"set selective display fold everything greater than the current column, or toggle off if active"
(interactive)
(set-selective-display
(if selective-display nil (or (+ (current-column) 1) 1))))
Further elaboration should combine the two functions.
See also: How to achieve code folding effects in emacs