For all of you who was asking why GMail was using a flat Labels structure instead of the folders structure used universally before, I personally like the labels way of organizing emails and how I can tag a message with multiple labels.
But I was having a hard time using it in Outlook (as connecting my Outlook to my GMail account through IMAP creates a very ugly Label names if I want to manage my email as I usually do inside Outlook), but earlier this month GMail Labs introduced a new Lab, the Nested Labels.
This allows me to use Nested labels to see my labels in the same way I see them in Outlook, it's a great feature for some users who prefers the folders hierarchy way of organizing emails or who need access their GMail accounts through Outlook IMAP access.
Official Gmail Blog: New in Labs: Nested Labels and Message Sneak Peek
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