A Cautionary Tale: Do not move or rename your iCloud folder
tuaw.com
tuaw.com
Wow. When Apple's copywriting is that down-to-earth, you know that something is different.
In seriousness, between this fragility and the lack of nested folders in iCloud, I get the feeling that Apple's taken a leaf out of Windows 8's book on this one... by focusing on non-power users, they'll generate a lot of hate and bad press from their once-loyal power-user customers.
2) Mucking with this folder's rather like mucking with a Courier mail store, or a MySQL data directory: If you're gonna screw with it, you'd better know what you're doing and how all the pieces work. Apple hasn't published those details, and likely never will, so don't touch it. They've placed it in a hidden directory for a reason.
3) iCloud was never targeted at power users. Maybe it'll evolve at some point, but I wouldn't bet on it. Power users can use Dropbox, like they probably already are. Apple's not doing anything to stop you, there.
That said, the magnitude of problems resulting from this surprised me. What happens if an iCloud sync folders gets corrupted due to a technical problem one day? Isn't this fragility also kind of a nightmare for Apple's developers?
That might seem like the first step in solving this problem, and I wouldn't doubt that he did it if not for the instant jump to "restoring my iPad didn't help. everything is miserably broken so I called Apple."