Well, my use case might be a little tricky to explain, but in general, if the structure of types within an app is not a simple hierarchy, it is sometimes useful to set up multiple smart folders to provide different views on entities.
So for example, in the usability template, there is already a smart folder that shows Tests and Participants, but I might want to add a second smart folder that shows Tests, Tasks and Attempts, for example.
If I have two smart folders, that are both configured to show Tests, then the views for Tests in these two smart folders cannot be different.
Also, if I take the existing smart folder in the template and enable Tasks and Attempts, the Attempts sit under Tasks, but could just as easily sit under Participants.
I’d be happy to discuss my use case but i suspect it won’t be very interesting to most users on this forum