Libraries in Longhorn?

Will Longhorn really drop the much familiar concept of physical folders? Will Libraries be the next storage unit above files?

"WinFS will have a Table of Contents for each document type and app type and will intelligently manage storage space for them."

I'm not quite sure Longhorn will drop the concept of Physical Folders because MOST techies would just not want to leave Windows to manage all their storage space. So lets think about it logically taking the example of the Video Library:

The WinFS experience will be like storing all the .NET Shows you have downloaded along with Britney Spears' videos but viewing them with visual partitioning by Artist, Genre etc. rather than physical partitioning i.e. Folders. This has already been partially accomplished since WinXP by the "Show in groups" feature but this feature only checks the file extension, size and other parameters to group them accordingly. I think if Windows is able to manage and intelligently organize file storage according to more user friendly parameters other than size, last modified etc. such as Artist, Composer, Director etc. for a Video, WinFS will be a success because it will highly boost the user friendliness of the Operating System Storage which will lead to faster file searches due to the fact that Videos will be under a Videos Library which will be a structured representation of all the videos in the system.

I wanted to put in much more to this to prove why I think WinFS, Indigo and Avalon make a great User Experience but I was short on time....

Anyway what do you guys think about Virtual Folders or Libraries?

Eather one works for me, as long as I can still mess around with them.
  Libraries sounds cooler though.

But this is all predicated on the assumption that the Library will have the appropriate metadata.

How will we be able to add the proper metadata to thousands of video files?  Are there steps being taken to automate this process for NON-DRM enabled media?  I am sure you can already get ID3 and EXIF Information, but I am specifically wondering about videos or other files that do not have a standard of embedded metadata.

For instance will there be BUILT-IN search mechanisms that can go retrieve cover art from the internet, etc.

How about a hidden hashed folder for each file with the file information?
What if we cannot access the real folder and we can access them only thru a new file system, a kind of virtual file data base?
We maybe able to call it a managed file system.
This is all my guessing, though...

Steele wrote:

But this is all predicated on the assumption that the Library will have the appropriate metadata.

How will we be able to add the proper metadata to thousands of video files?  Are there steps being taken to automate this process for NON-DRM enabled media?  I am sure you can already get ID3 and EXIF Information, but I am specifically wondering about videos or other files that do not have a standard of embedded metadata.

For instance will there be BUILT-IN search mechanisms that can go retrieve cover art from the internet, etc.