Smart folders would be more useful (or at least equally as useful) as the "move to folder" automation. Smart folders could automatically sort documents into folders by status. They could also sort documents by tags. Ideally, the document library would be able to be viewed in multiple manners, similarly to the way Gmail uses tags or Outlook uses smart folders. You click on a smart folder, and all of the items that meet the criteria of the smart folder appear, even though the items are not physically located in the smart folder. The smart folder serves as a way to view items in your library.

Note that I would want the smart folders to be able to be shared to collaborators.