To clarify, the folder structure of Runtime:Libraries:Character needs to stay the same, otherwise Poser won't see the files.

However, inside the Characters folder, you could have a Domestics, Fantasy, Sci-Fi, Wild set of folders, with any animals/monsters/whatever sorted within them.

So you can have Runtime:Libraries:Characters:Domestics:Dogs:DAZ MilDog.

Really, you can organize folders inside the Camera, Figures, Expressions, Poses, Props, Hands, Lights, Hair, and Materials any way you want, just make sure to not change the names of the folders that Poser uses for it's Library interface.

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If you're joking that's just cruel, but if you're being sarcastic, that's even worse.