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+Google has given Docs and Spreadsheets a [makeover and added some new features][1], including support for folders and live search, but while the new interface is looks different, in some ways the new "features" are a step backwards.
+
+Folders were undoubtedly one of the most requested features for [Google Docs][2] and they have indeed arrived, however folder support comes at the expense of labels. Label (or tag if you prefer) support has been dropped in the new Google Docs. 
+
+Existing users will note that all their tags have been converted to folders which work more or less like labels, but include drag-and-drop support. Unfortunately there doesn't seem to be a way to re-order the folder list hierarchy other than with creative naming conventions.
+
+But the real problem with the new folders is their inconsistent behavior. Files can be  be placed in multiple folders, but rather confusingly this only works from the main list. 
+
+If you drag a document from the main list to a any number of folders it will be added to those folders. 
+
+However, if you are inside a folder and drag a document to a different folder it will be removed from the first folder, which makes for a rather confusing user experience.
+
+People have been clamoring for folders in various Google Apps for some time, however, this implementation may leave many questioning their wishes.
+
+Given that Google is aiming Docs and Spreadsheets at the business crowd, the move to folders makes sense, folders are a much more familiar organizational metaphor and have a somewhat more "professional" feel about them, but in terms of functionality the new folders differ from labels largely in semantics.
+
+I always thought of folders and labels as complimentary, so ditching labels in favor of folders seems, well, kind of pointless. Now everyone is going to clamor for the old labels -- why not support both?
+
+And the labels to folders move isn't the only letdown in the redesign. Those using the collaborative features will likely miss the "last edited by" function, which appears to have gone the way of the Dodo (if you know where it went, let me know). 
+
+Also, while it's a minor point, I can't help thinking that interface has a very un-Google feel to it, I don't mind the re-design, but it looks more like something Yahoo or AOL would come up with.
+
+But the redesign isn't a total letdown. There are a couple of truly useful features in the new Docs and Spreadsheets. The live search suggestions tool with dynamic results pulled from your document list as you type (think Google Suggest or Apple Spotlight) is a great time saver and the ability to sort documents by collaborator is also quite handy.
+
+Since there doesn't appear to be a way to revert to the old version, the Google Docs redesign, for better or worse appears to be here to stay.
+
+[1]: http://google-d-s.blogspot.com/2007/06/entirely-new-way-to-stay-organized.html "An entirely new way to stay organized"
+[2]: https://docs.google.com/ "Google Docs and Spreadsheets"
+