You can, except you don't move the original files around but create shortcuts (pointers) to the file.
Here's one on YouTube about categories: https://www.youtube.com/watch?v=_nnPf8nCcc4
Shortcuts just add to the clutter.
Not necessary for manual installs.
Just move it where you want it & navigate via the Content Library.
They are for 'smart' content & 'connect'
The latter is truly the spawn of the devil! :00
Somebody who has a mega collection already neatly organized and sorted, just upload your entire Content Library folder up to the net and let me download it.