Yeah, I know they aren't true folders, and that might be why my post was a bit confusing. However, this is exactly what I want to do. I want to set up the search to locate all files in the "Downloads" folder and then sift through them. Ideally that would make it so that I don't always have to find a place to download items. The Smart Folders will hold specific contents of my downloads folders.
I'll play around with Automator to see if there's anything that will do what I want, and that might be my only option.
I guess I just assumed that Smart Folders would easily let me highlight all of the contents of a specific folder structure. TO this point, though, I haven't found an easy way to do that. I could just not be grasping the ease of the concept, though.