I agree. The problem is that one photo would make sense in a particular event, which is time based. But also location based. And may have people.
But you may want just the people part. Or the place part. Or you may want to see several events at the same place. Or people at different events. You'll have difficulty coming up with folders/albums/collections etc for all those events, but fear not: that's what filtering and searching is for.
The folder/album thing is limiting because of the metaphor of these as physical objects, containers that contain things. They really don't; ALL of the photos you see in LR, Aperture and iPhoto are actually physically not "in" anything, even if you don't use "referenced" photos (in that case, the software just makes a hidden filesystem folder structure for you). So you sit around wondering if "mom's birthday photo" should be in the "family" or "birthdays" or "1//1/14" folder or album or folder. But when you put that photo in each of those, you are sort of just tagging it with "family, birthdays, 1/1/14."
So what's the difference then? It's that with tags/keywords the metadata of the keywords is attached to the photo. So if you're outside of LR, Aperture or whatever you can search for and find all the "family, birthdays, 1/1/14" photos. Or within say LR, you can set up a filter to find them, along with other attributes, like 5 stars. So rather than have a bunch of albums/folders/collections that are static, you can make them up on the fly.
I don't really have to worry about where I put my photos, as long as I keyword them. I use collections as what they really are, saved searches. And they are often temporary. So I have one called "girlfriend" which contains the critera of keyword=ScarJo, and bingo, I've got all the photos of her. When that changes, I just change the criteria to keyword=JLo and it still works. I never know what I might need to search for, so I don't worry about creating albums or collections with any particular criteria, since I know I can always set one up once I am trying to find something.
HTH,
Rob