You are right that users don't want to do that busy work.
But I am less sure users actually want folders.
Some power-users, sure. But most normal people don't want to deal with folders, either.
For evidence: look at the guy who saves everything on his overflowing desktop.
Any system that allows people to find their stuff, and perhaps make a few annotations, will be good for them.
Google Photos is almost a good example: I don't have to do annotate anything, yet I can search for eg pictures of snow or by location.
(I say only 'almost', because while impressive, that system isn't good enough yet to find obscure stuff or to work on contextual cues like 'those pictures I took at home after we came back from shopping sometime in the last few months'.)