[dth4310]

Here's the way I read...

/sdcard/DCIM (pictures/videos)
/sdcard/media/ringtones (ringtones here)
/sdcard/media/alarms (alarms here)
/sdcard/media/notifications (notifications here)
/sdcard/music (music here)

You're right, it wasn't stated clearly.

I'm gathering that Android will scan for appropriate music files throughout the SD card (having good ID3 tags a must), and the creation of the music folder is just convenience for "user" organization.