Mine doesn't go that deep Acadia 'cos you could get too deep with it.
Similar to what you say though, in my Character folder I have a sub folder called clothing, but the other sub folders are only by figure so I have a V3 clothes, M3 clothes, A3 clothes etc. as you have said, but I don't create anything further down than that because each clothing item has it's own folder made by the creator anyway, so my V3 clothing folder has a number of folders with clothes in.
You have to remember that this system will only work well for you "IF" you use the small black triangle to navigate it!
The naysayers of this sytem will tell you about increased load times and such which isn't strictly true, the initial start up may take slightly longer [we're not talking minutes here] but once in, loading of items and navigation are IMO much quicker than multiples and yes I'm talking after trying both methods!!

Injustice will be avenged.
Cofiwch Dryweryn.