I've been using Windows 7 Library some months even though Windows 7 was installed as default on my laptop for some years. Here is the reason I came up with Libraries. Recently, I open many folder to work at a time and yeah, my file system is complicated by time too. I always need to save many documents on these scattering folders. Let's say, I need to save new recipes into my Cooking folder, save skill-set knowledge into PM and its sub folders (Scripts, Leadership, Small Project, A+, Agile, IPv6 ...) and maybe some other folders for Health concern. It's tedious to browse into sub folders all the time when saving files into different topics.
Here is the solution: http://windows.microsoft.com/en-US/windows7/products/features/libraries