Gmail Finally Introduces (REAL) Folders

Since it’s early launch, Gmail users have been screaming for some Folder organization feature just like Yahoo! has. Gmail introduced later on Labels, which is a way to label your emails and you can use filters to automate this labeling based on email content. But that was still different from what people needed. Email would still show up in your Inbox just with a different label. Or else, you can Archive it with all other emails.
Today, Gmail started displaying new top button styles with the feature of moving those emails to your Labeled Folder.

Smartly, the Move To action uses same label names. So you first need to create new labels (folders), then you can both assign label to emails, and/or move them to the new folder, which for me is much better than just moving them.
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Comments
Folders are ancient technology. What matter does it make whether the emails are mixed or not? Put the label you want and that’s it!
If you need to search for an email with a certain label, then click on the label and look.
So now you make a folder called pictures and use multiple labels inside the emails inside it? Why not just use a label called pictures in addition to the rest of the labels?
:/
http://mail.google.com/support/bin/answer.py?answer=10708&cbid=-1cvh5af2lub2b&src=cb&lev=answer
use labels.
folders as MBH said is to archive them and clean up your main inbox. It is useful if you want to immediately move specific emails such as FWDs or subscriptions and store them away from your main page. This comes handy when you check your inbox via mobile, you don’t get annoyed with incoming emails that you’d rather check later via PC.

I think this is going to confuse me. I have just recently started my labels and now have to co-ordinate with folders?!!
My problem,
I label new emails and archive them so that my inbox looks clean and only from people I don’t get much emails from. Once the Inbox mail is read I archive it to clean the inbox.
My complaint is that I can not do the same when reading my Labeled emails. They are already archived and thus I need somehow to transfer them off my screen to clean it. I don’t want to loose the label at the same time. the only answer I see to this is to make another label for read email that is specific to each label I already have (so that I can remove the initial label and keep the second to have my sorting labels and clean my primary label folder).
How would Folders help me in this? I have to think it over.
Q.