Foldering in Document Libraries

Why do people insist on using folders in SharePoint like they are using 'My Documents' on there computer? I have seen this more often than not, then the users complain on the folder hierachy, it's too much. Well, this is partly Microsoft's fault :( The best approach I have learned when it comes to document libraries is to refrain from using folders as much as possible. Instead, create 2 custom columns or three if you want. Name the first column 'Document Type', make it a choice, then populate the choice fields with possible categories you would use. Let's say we are creating a Helpdesk Support Doc Library. Make some choices, desktop, server, internet, applications etc...Each document that is upload to this list should have a doc type assocaited to it. You could then create another column, say department if you are in a big company. This way maybe different departments have different solutions to the same problem. When you are done, create views to filter the doc types or departments or any variation. Then, group them by doc type, this will create a folder like look. Hope this makes sense.

John