I agree with most, but not all, of the points raised above. 

Folder structure: it may make SENSE to use a nested folder structure. For example, I've made a couple of free V4 clothes recently. Their geometries go in :runtime:geometries:svdl:v4clothing:
In my opinion, that's a logical folder structure. I start it with my screen name, since I'm the only one using that screen name (at least on 'rosity), I can be fairly sure that the subfolders I place within the "svdl" geometries folder will not be overwritten by someone else's stuff. Rather important, I'd say.
I plase readmes in :readme:svdl:productname. Why? Since some freebies contain more than one text file - a license file, special instuctions in sort of a manual, plus the standard readme... Again, I'd say that is logical.
The same goes for the libraries. Poses, props, characters, they go in ":svdl:product name", sometimes with a product category in between (useful for a V2+V3+V4 version of a product). 
I don't think my name is that important. But it will allow the user to easily select the folder branch and move it to the desired location, without having to hunt down several folders in the character or pose libraries.
Same goes for textures. 

So I do not agree with the call for "no subfolders". There are very good reasons to use a folder structure. 

But I do agree that the folder structure should be set up with the comfort of the end user in mind. It's not meant for egotrippery.

The complaint about the paths pointing outside the runtime structure is something I, as a content provider, COMPLETELY agree with. While investing in a tool like Correct Reference may be a bit much (well, $30 isn't that bad) for a freebie provider, I'd suggest that commercial products should be run through CR or a similar tool before submitting to testing on the MP. 

Everything I make is freestuff. But that's not a reason to release substandard stuff. A freebie provider should strive for the quality that is expected of commercial products, not only in the mesh/texture/pose/morph/whatever, but also in the setup.
That way, if the freebie provider ever considers entering the MP he/she a) already has a habit of correctly packaging the goods, making it easier to pass the MP testing procedures and b) already has a reputation of making good quality stuff with correct setup procedures, increasing customer trust - and sales.

The pen is mightier than the sword. But if you literally want to have some impact, use a typewriter

My gallery   My freestuff