I have never used the Downloads folder. Like Brand, I prefer downloads to show up on my Mac’s Desktop (though I simply changed Safari’s default folder for downloads to save to). I prefer the Desktop for downloads mostly because I don’t always know the name of the file I’ve downloaded. I do however know what type of file I downloaded and literally where on the Desktop it gets placed after download. In short, it’s just plain easier for me to work with downloads when they go to the Desktop.
And to keep my Desktop clean, I have a rule in Hazel that moves all files on the Desktop which have been untouched in the past 24 hours into a Dropbox folder named “Desktop Cleanup”.