There is no single folder structure that fits every account, but the organisation should make sense to the people who need to find the files later. A small website may only need a few folders, while an agency can benefit from separating clients or active projects before the library becomes crowded.
One workable approach is to use the workspace for the broad project or team boundary, then use folders for the main groups of files. Tags can carry information that cuts across those folders, while clear filenames help when the asset appears in search results.
For example, instead of keeping files such as IMG_4821.png, final2.png and new final.png, names such as pricing page hero.png or client a product demo.mp4 give someone useful context before the file is even opened.
The goal is not to build the deepest folder tree possible. The goal is to make the current file easy to recognise and easy to retrieve when someone needs it again.