Apps that save to iCloud (like TextEdit on OS X) create folders with their name that you can't edit the name of or delete it seems.
Something like this always happened, only now you can view them more easily on OSX - you couldn't view them on iOS before either.
However it may now be possible for iOS text editors to use the new iOS 8 iCloud Drive file picker. So you might have to wait for 3rd party apps to update for iOS 8.
Remember there were those rumours of a Preview app for iOS 8? That would come in real handy right now. Maybe in a later beta. You'd be able to use it to get a basic preview of a bunch of files like these text files.