This is bad. Sure, you can make the user forget about files most of the times, but not <i>kill</i> it completely, because:<p>1) It'll be a hell of work to parse everything. Should my music clips go into the music folder or video folder? Sure, you can associate file extensions, but what if the software isn't installed yet? If two programs have to share files? The relations can fail in too many ways.<p>2) All software to ever run in this machine would have to fully implement it's own "file explorer". The picture manager will have to be able to rename, organize move files, as will the document editor, the video player, the text editor...<p>3) Less freedom of movement. What if I want to send a set of videos, documents and audio files to someone else? Would I have to open each app and politely ask it to send an email (which they will have to implement, too)? What if I want to backup an entire hard drive, with hundreds of different file types?<p>3) It'll be a complete hell if things go wrong, and you will have to resort to file management anyway. File lost extension somehow? Major file extension conflict? Unknown file type? You are screwed without manipulating the files themselves.<p>And don't even get me started on the reliability of your "in the cloud" future.