Cool. Now, that was a fast usability discussion, wasn't it? :)
Regarding usability experience: it's a topic full of controversy and
usability experts often disagree about the details. It depends on
which philosophy you want to follow (explore vs
just-works,don't-care). I think your suggested UI fixed the greatest
flaw (the files pop-up) and that's really what counts the most. The
rest was mostly a question of design philosophy (IMHO, "explore" is
better for games, not apps).