I like the idea, but just because the USB drive is a FAT filesystem is no reason to use Windows file and folder naming conventions. I like two-letter variable names, and SHORT 3-letter lowercase file names in the LONG tradition of linux filesystems. I and others like mirroring the root filesystem to the USB drive to some extent, but to prevent USB drive clutter some people have been putting their stuff in an /opt folder on the USB drive (/mnt/us/opt/bin, /mnt/us/opt/lib). I have been putting some of MY stuff in /mnt/us/system/bin (and other folders in /system on the USB drive), but that carries the risk of people forgetting to copy files hidden in /system before formatting the drive, AND "/opt is shorter than /system" -- and as you can see, I need SHORT names to pack maximum content on each line and on the screen without scrolling (called "above the fold" in newspapers, and in webpage design), or I just will not support or use it.
So although I and others have felt a need for organizing our USB drive filesystem, I think the "opt" folder method is much preferred to "HBapplications" and other long windows-ish folder names. At least I did not see embedded spaces in the filenames...
I am also of the opinion that XML is so "yesterday" -- I much prefer smaller data packets flowing in my client/server apps, although at least JSON (used in the kindle) is a step in the right direction AWAY from XML.
So... good idea, but the implementation needs a lot of work before I will use it, so you are creating "yet another standard" here.
'The nice thing about standards is that there are so many to choose from.' -- Andrew S. Tannenbaum (disputed)
'Standards are the beginning of doom' -- Friedrich Wilhelm Nietzsche
'Mediocrity finds safety in standardization.' -- Frederick Crane
'K: (n., adj.) a binary thousand, which isn't a decimal thousand or even really a binary thousand (which is eight), but is the binary number closest to a decimal thousand. This has proven so completely confusing that it has become a standard.' -- Tonkin's First Computer Dictionary
'Multilevel standards are like onions. They're smelly and make you cry a lot.' -- Ron Natalie
'Geez, you'd think standards were a continental disease or something.' -- Brian Reid
'If there was a single standard for the English language it would not be necessary to support redundant spellings.' -- OSF1 ls(1) [man page]
'Standards is an area that is constantly changing.' -- Carl Cargill (ed. ACM StandardView)
'Standards are always out of date. That's what makes them standards.' -- Alan Bennett
'How'd it go? "hundred madmen raping a girl for a week and conceiving a homicidal maniac - perfect allegory for ISO standard development process.' -- Al Viro on standard commitees.
'It indicates your bios authors can't read standards. Thats a quite normal state of affairs, so common that the kernel cleans up after them.' -- Alan Cox
'[the] W3C couldn't make bread without at least three different commitees and several hundred megabytes of XML involved' -- aiju
'standards are increasingly being viewed as competitive weapons rather than as technological stabilizers.' -- [James Gosling, Aug 1990]
... bad notations can stifle progress. Roman numerals hobbled mathematics for a millennium but were propagated by custom and by natural deference to authority. -- Doug (quoted in "the hideous name")
'It is not enough that X be standard, it should also be good.' -- Rob Pike (Window Systems Should Be Transparent)
EDIT: This is fine for a rough first draft, but the kindle is a linux device, so lets work on making this less "Windows-ish" and more "POSIX-ish" before we vote to ratify it as a new standard. I agree that we NEED a "standard" (just not this one), so I am giving your some karma points for your ongoing effort, but not the full 2600 (perhaps 500 is about right.) [The system will not let me add any karma to you until I "spread some around". 
]
