Folders in SharePoint Document Library?

Both Mike (siolon) and Edward Ferron establish a great case on their blogs towards why we should not use folders in SharePoint. Here is a summarised version of their points:

• Improve findability (reduce number of clicks)
• Setting security turns into administrative nightmare when doc library grows
• You cannot add a folder by itself to a web page in a web part so personalisation is difficult

Suggested solutions:

• Create custom columns and views to create illusion of folders
• Use metadata and filters
• Implement folder content types