Overall I think it would be productive to go back and redesign these old folders, even if it breaks some stuff if only to better reflect the way the new generation of consumers understands tech. There are probably a lot of young people who have never used a PC before, and will be confused coming into them with a background of smartphones and tablets.
Maybe we should eliminate the Desktop folder completely, and only allow adding widgets/app launchers/shortcuts to the desktop rather than files. Using the desktop as a folder has always been a questionable practice since you can't even see it when you have a window open.
At the very least, we should get rid of the "Templates" folder. I still have no idea wtf that's meant to be used for.