There would be advantages for saving all files to one large repository, and having the names in folders and subfolders serve merely as shortcuts to the unique document in the master file. 1) I can instantly save a file to multiple locations, with only one master. 2) Links to a file don't go dead when I move the file to a new folder. 3) It should help with syncking files on multiple platforms, particularly if I've moved a file on one of them. 4) There could be search advantages for finding 'lost' files (maybe not, that's not my area).
Maybe, but this would be counter to file system support bound in the OS X/Darwin, Linux and Windows OS the project supports. So, think it would require a lot of development overhead with minimal return of function. That said, might have some merit as it is not that disjoint from efforts on "cloud storage" and WebDAV, CMIS, Alfresco, Google Drive, etc. even MS SharePoint support for folks that want to go that route.
UX team: I think this needs to be re-evaluated
Not much further input after Stuart's "not much benefit" argument. Actually five years is a whole generation and file handling has nowadays evolved into the cloud.