Creating folders on iOS

I’ve heard mention on MPU several times that not being able to create folders on iOS was a friction point.
I just created a couple of nested folders using the Files app. Am I misunderstanding the issue?

When you’re saving a file in an application using the “save to files” share sheet action you cannot create a new folder to save the file in (or rename the file you’re saving, for that matter). You can only save in a preexisting folder and using the existing filename.

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Thanks for clarifying. That is quite a limitation, especially not being able to change the file name.