I’d like to bump this up if possible. I find this use case very compelling.
When I started Obsidian, I was all about a flat vault that made heavy use of tags. I also when wild with plugins and dataview to create dashboards and MOCs for different projects. But recently, I realized that one of the advantages of Obsidian’s markdown system is portability. But the more I rely on the the tag system and the plugin ecosystem the more I get locked in to a single tool that I can use with my vault. Don’t get me wrong, I love the program. But I need to collaborate with a group and it would be best if I didn’t have a system that would lock them in as well.
The value of folders as tags is that it lets me have a hierarchical folder structure that can make sense outside of obsidian while allowing me to use the wonderful tag system for searching inside of Obsidian. You can envision it like this, directory A has A/todo/ and directory B has B/todo/. It I search for the tag “todo” it would be amazing to get files from both folders. I think of it like hierarchical tags but in reverse (todo is a parent of A and of B instead of the typical tag of A/todo and B/todo which would be different tags. I hope that made sense.