Up until Mountain Lion, documents in iCloud were organized completely flatly; no folders, just one list of files.
Now, you can add one level of folders, like the way you organize apps on an iPhone. The linked to article asserts that very few people can really cope with large hierarchies of folders, and the paradigm of folders-in-folders is complex.
I agree that, although folders-in-folders was a good solution, it’s a good idea to look for something simpler. However, restricting folders to one level doesn’t solve the fact that folders-in-folders offers more power than no nested folders, so I’m disappointed Apple haven’t been more ambitious.
With the power of modern computers to index and search, labelling documents would offer a brilliant way to organise them. Most people would continue to have a simple, flat list. If you want to group up documents by project, progress, context, audience etc. start applying labels. Documents can have multiple labels, and you can have smart folders, e.g. to list ‘archived newsletters for my photography group’.
Simple; no nesting; but crucially, no loss of power.
