Re: its not a folder, it is a directory!
@eldakka: the "folder" terminology may be disconnected from the underlying reality, but the layperson analogy is consistent: a folder contains "documents", not files.
I just checked: fired up a Windows VM (something I don't do often - I am of directory/file persuasion myself) and Windows Explorer, went to the "Documents" directory... eh, sorry, folder, right-clicked and chose "New". I get a "Microsoft Word Document", a "journal Document", "Text Document", and all sorts of other stuff (including something called a "Briefcase" - no idea what this metaphor is about) but not a single "File".
A quick glance at Apple Support pages (no Mac here) seems to indicate that they use the term "Document", too.
Yes, I am with you: it's files and directories for me, and a directory (as well as everything else) is a file. ;-)