We followed the Notion model, where documents contain other documents operating as folders. The biggest problem I see is user confusion about the difference between a document and a directory. Additionally, I have always suffered from users creating unintended document nesting!
Folder Responsibilities:
Layout inheritance.
Permissions inheritance.
URL Levels or hierarchies. With the explicit concept of folders, moving documents would become way easier!
Document Publishing Location.
We shouldn't encourage Folders to help with Knowledge organization; document hierarchy and hypertext links are a much more efficient alternative to organization.
However, it might be suitable for permissions and community or group organization. A simple tree is enough to organize people. But don't try to manage knowledge with a folder tree!
We want to move the directory panel from the Document Accessory panel! It doesn't belong there. However, the children's documents should appear on the main panel.
Smart Folders are built with rules such as Filtering by Tags. An example would be Private documents.
Can we merge Collaborators and Folder under the same screens?
I like Apple Notes
Notes open on the main panel while the folders are in the navigation bar.
I like Smart Folders; we can use them for handy things, such as tagging.
I don't like that Apple Notes encourages users to organize content with folders. Also with tags! that I like!