@magicalclick: What AndyC is saying is that a generalised method of file metadata includes the possibility of organising files hierarchically, which means we don't need to organise in physical disk-based folders first.
Your screenshot of Explorer just shows the limitations of the current system: you can either have the hierarchical file-directory structure, or you can search and get a large, un-organised list of files that match a single criteria. Andy is talking about a system where you could, by default, view a directory-style structure, or you could then flip to show another hierarchical structure (like dates, for example if you look at Live Photo Gallery) without having to perform a physical traversal of a potentially deep directory hierarchy.
If we go to a meta-data based system we can do away with the physical fire-structure system and only have one generic method of handling organisation. cbae seems to want to keep the physical structure of fire directories which would be redundant, therefore making the system have to deal with two organisational systems; why have two when one is redundant and we can do everything with one system?