The location bar makes it much comfortable to navigate through folders by having the arrows where by clicking them you get the list of folders. This prevents of having too click too many times the back/up buttons. 
Although i thought that would be even faster if in the folders in the drop-down list had extra arrows in order to navigate to sub-folders without having to open first the desired folder and then continue searching for the next sub-folder. It's a bit disorientating when having to look one time on a folder list and then to a thumbnail style folder for example. 

Here's a screenshot of what i mean:
https://plus.google.com/photos/100171685946621721834/albums/5741200893794370529

...as an image make always things more clear.

ps. in the photo, as sub-folder menu i have put the same one but i think could be clear enough.



Reproducible: Always