Supposing Martin was in a different course and wanted to display a resource he'd uploaded elsewhere on Moodle? Previously, he'd have had to reupload it, as every course has its own separate course files area. Now, he can follow the path in the File picker to retrieve his file. Here's an example:
Martin is in the How to Be Happy course where Andy is a teacher. He'd like to display the overview he put on the front page. The following screenshot shows the journey he needs to make when he accesses the File picker:
This is the current course view. It's the default view when accessing Server files. Here, it's the How to Be Happy course where Martin is working just now.
This is the category view showing available courses. We just have the Miscellaneous category. (Note that Martin doesn't have to click here ; he can click straight into 3)
This is the System view which makes available the Front page folder.
This is inside the Front page. The Course section summaries...