I was just going to post the exact same question and saw that you beat me to it.
Folders are a critical missing piece for me before I can use this tool with my team. We are a real estate office, and all our documents are mostly titled the same thing (flyer, loan options, tax bill, comparable sales, etc.) that are then saved within one property folder (123 Main St.). The way Office Live is set up now, I'd have to rename each file with the property name, very cumbersome, or create a separate workspace for each property. Neither of these are very appealing.