With a directory structure at least you can look into the folder of the project, see what's inside and open the files to find the one you were looking for. If you were looking for a specific Word file and only a dozen of them are present in the folder, you can always just open all of them manually to check what's inside regardless of how poorly they were named/managed. Good luck trying to find the Word file with bad tags when searching for "*.docx" return thousands of results.
A pure tag system only works for small libraries, it requires far more discipline by properly tagging every single file, it does not scale and it does not work well when you collaborate with other people. It works well in situation where you can automate the tagging (eg. a collection of pirated moves) but is pure garbage for normal files that you typically use.
It's a lot easier to tell people to place pictures of karl in the "karl" folder than it is to make sure that every single picture gets properly tagged with the word "karl". I can imagine hundreds of different scenarios where it gets tagged slightly wrong. Typos won't be easy to fix because they will simply not show up in the search when you type it. How many files with "K arl", "Carl" or " karrl" are there? no one will know.
what do you think happens if you make a mistake with your tags and/or there are typos in the filename? With a directory structure, you can navigate to the location and see the list of items to quickly identify what you were looking for. It is far more forgiving when it comes to poor organisation or mistakes. With a pure tag system, a file with the wrong name/tags is pretty much forever lost.