Sharing a Google Docs Folder shares the documents, but not the folder

Question

I created a Google Docs folder with 2 nested subfolders and 10-12 documents, and shared the folder with someone who has a Google Account hooked up to a Yahoo email address. When my collaborator opens their Google Docs, they see all the files (flattened), but neither the folder nor the subfolders show up for them under "Folders Shared with Me." When I had my collaborator create a @gmail.com address and shared the folder with that Account, the folder showed up.

Is this:

• A known/intended issue?
• A bug that I should report to Google?
• Something that I can work around?

Answer 1

This isn't an error. This is how Docs is setup.

It isn't possible to share folders through Google Docs, I don't know their reasoning for it, but I do know that it's impossible.

I think their reasoning is that you may have a different organizational system from the person you're sharing items with, so folders are personal settings. There may be a programming reason for this as well that could involve how there databases are setup, but I don't know.