this is the functionality that WordPress should have included from the start

It’s hard to believe that a professionally designed tool like WordPress would force you to keep hundreds of images in a single bucket. Folders fills the gap and goes beyond by providing a way to organize your posts and pages as well. The development team is very responsive when there are issues. The next thing I’d like them to work on is a better implementation of their folder arrangement interface. Dragging a folder works well but creating a location to drop it is difficult and very sensitive to small movements of the mouse.