Michelle, I've added you as a watcher here too because it seemed like you were interested in helping.
This bug is not the File API itself, but purely the interface for users.
The main approach I think is to show people the workflow of using the "Private files" area.
- As a destination to build up and manage a set of files (via block on their home page, and possibly add a navigation link under profile)
- As a source when selecting files to use in a course (from within the filepicker)
This should be enough for most people.
For courses with multiple teachers who want to construct a shared file repository, there are a few options:
- They can make a hidden Folder activity in the course and use that as a source.
- They can store the files in any external repository(eg shared drive, dms or repository service) and configure Moodle to use that.
- Possibly a special new type of "Course files" repository ?