This. Files and folders are not an optimal paradigm for this stuff. Partly because even real files/folders are not a "civilian" thing, especially now. Plus, there's typically just one level of folder nesting in the real world.

The actual user story is always: find what I'm looking for. Google got it right with GMail and informal searching - screw manual organization. Power users should be able to set up structures, but typical computer folks don't need that.