I agree that is confusing. I actually liked to be able to share a folder from my Photos inside Drive, with other people. But after the Backup and Sync I think it got even more confusing as for example if a picture would go to a file folder or Google Photos folder. Anyway, my most expected feature is 1080p 60 FPS and 4K.
In theory, this would have been great. In practice it was not. So, no big loss.