Hi Danny,
As Grendel said, you don't really know what's behind a layer until you click on it.
In practice it's not a huge problem, as you remind the structure automatically in fact, as far as you don't play with more than 10 layers of course.
Now the more I think about it, the more this system looks probably a little bit 'old school'. As I'm so used to it, I probably don't have a good overview of the weakness ... the main one is that you limit yourself to a couple of layers.
The simon example is quite cool, the tree looks good and you have a good overview of the structure because every part are correctly named.
The problem, for unorganized people like me, is that most of the time I finish with a tree like the cinema 4D image, where only one or 2 objects are correctly renamed, and all the other layers are 'untitled'. So if I still have to pick layers one by one until I find the one I want to lock, hide, or show :(
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