In my mind, this issue isn't so much about what way is "correct." It's more about ways that can lead to dead ends as the photo library expands.
For example, many would agree that a single folder full of 100 pictures may not be a problem today. But when that library grows to tens of thousands with many different subjects taken in may different places for many different reasons, that idea will hit a dead end. The owner may not see that coming.
I've mentioned a potential dead end to my folders-by-location arrangement. One day I may have so many pictures that they can't all fit on a single storage device. At that point, bringing on a second storage device brings the question of what to do with that system? I'd probably have to move an arbitrary number of top level location folders to the new device. If my system were folders-by-date, I'd just cut over to the second device on a certain date.
For me, my system works well and I'm willing to take the chance that I may have a somewhat less good solution if I have to split things across storage devices. Or maybe storage devices will continue to grow in capacity at least as fast as my library grows.
My reason for starting the thread in the first place was to hear from others, with more experience and larger libraries, about potential dead ends.
This is exactly the problem with
physical filing by subject [location is a subject]. It doesn't scale well or adapt to increasing complexity without more work.
Date filing for physical organising does not have that issue or any need to adapt and is less effort too, so win, win.
I have 376k images and now with
yyyy-mm-dd description filing there are no problems as my library expands/gets more complex.
With music, I physically file everything alphabetically [the equivalent of date] and then use smart playlists to organise by genre/feel and finally after several decades and various filing systems I feel my music is finally organised. Organising by single subject [genre/feel/tempo etc] simply does not work in any shape or form. I recall music for a variety of reasons, what city an artist came from, what genre they are play which can vary enormously, a specific tune, the band's name, when I heard it and so on. Now I can search by all methods.
By the way you can easily convert all your photos to a date folder system. Firstly tag all photos in your locations using keywords and create smart collections that correspond to to your locations or any other filing criteria you use. Now you have collections that correspond to your folders and any DAM you use will be able to do this. Now import all your images into LR by date and voila you now have all images in date folders, Create year and month folders to place the individual day folders in and add a description to each folder if you want [recommended].
Test this on a duplicate subset of your images to get a feel for it and once all the prelim work is done go for it,
if it suits you. There's be a chunk of work in adding folder descriptions in one big go but in future, it takes very little effort to keep going with this system.
It'll probably be easier to do with with a new catalogue as otherwise you have to delete all pics from current catalogue and then re-import by date.
But I really advise doing this with a duplicate set of images in case you decide to go back to your prior system.