Pros/Cons of Obsidian as high level folder on a drive

I would appreciate some help and discussion regarding the extent to which I use Obsidian. There has been a similar topic here, but in my view the discussions on pros/cons has not been explored enough.

Currently, I have a primary 4TB NVMe drive, and I organize everything using a form of PARA structure, as shown in the screenshot. The vault is the first high level folder on that main drive.

AFAIK, Obsidian is not really intended to function as a file browser, and I don’t plan to use it in that way, I have another tool for that. However, I am using notes with tags, backlinks throughout this PARA structure with my areas and files, create notes during projects or study sessions, and reference various files / file types. I like dropping a note or canvas in whatever context I am currently in. I have a separate PKM folder with a Zettelkasten-like approach under 04_RESOURCES. Generally, I really like this “high-level approach”, but I am concerned with cons like performance problems and other things I am not aware of.

An alternative approach could be replicating the file structure within a separate vault, but I believe this would cause annoyances in maintaining consistency.

What are Pros/Cons to using Obsidian as a high level folder?

I consider setting up Git and/or Obsidian sync, which means I’ll need to restrict syncing to notes only/specific folders. Some of my projects involve considerable disk space, exceeding 1TB, with numerous EXR files, and so on. I am already using git for some project types, so I am also concerned about potential nesting problems here as well.

Looking forward to your input

I use git as well as dropbox for my vaults. Everything related to a project is in the vault including images, pdfs and other large files. Git doesn’t always like the “.obsidian” directory and if the files are above some threshold it doesnt like those either. There is a git addon called lfs (large file support) that it uses to get around this but as this replaces the file with a link to the file, then the linked file itself is no longer in the vault as is. I don’t want that, so i tend to “.gitignore” the “.obsidian” directory and the directories with large files.

This means the directory structure of the vault can get quite large and nested as yours is but i haven’t seen any problems with that since i use templater and have a template for each directory.

This picture shows the top level directories only. Several of them have nested sub directories as well.

Thanks for the insight @CarolineMathieson , very helpful.

So - you are using vaults for each project if I understand that right? With git, .obsidian (gitignored) and Dropbox. I am also using lfs for my projects, but in my case I only have one high level vault. So currently for my projects using git, the .obsidian file is not inside a project folder managed with git.

Now, if I were to use the Obsidian sync service or git to manage my entire vault, do you happen to know how that might affect the nested projects within the vault that are already set up with git?