The path to a file can be thought of as no different from any other text tag. It has one distinction: when combined with sorting within each directory, it imposes a set of total orderings on the collection of files. Pre-order, post-order, breadth-first, each has useful qualities. Hiding the file system erases a host of manifestly useful organizing methods.
You could say that the Dewey decimal system is no better for organizing a library than the ISBN, because either one would locate your book, but that would be false. Arguably any real book ought to appear under a dozen different Dewey numbers, and an encyclopedia under all of them, but somehow that doesn't reduce the practical usefulness of the system.
It would show more insight to demonstrate an understanding of why such artificial, arbitrary systems are so useful, and so improbably usable.