SP2010 supports both folders and document sets, but why are both concepts supported, i.e. in what significant ways do they differ from the use-case perspective?
Google has revealed seemingly arbitrary differences like "document sets can't be nested" while folders can. Both support information management policies, both can have custom metadata (although folders seem to require some more clicking to do it), both can have custom permissions ... One important thing I noticed is that it doesn't seem possible to capture a version of the entire folder, while document sets support this (so you can do an easy restore later if needed). But why not simply just join the benefits of both concepts into one (i.e. document sets that can be nested etc.) and ditch the other?
In other words, why do folders even exist in SP?