Is it smart to have .prproj in the same folder as original footage?

Is it smart to have .prproj in the same folder as original footage so when archived, esp. on dvd, the retrieval process is simple and there will be no hunting for the .prproj to link to files?
Thanks,
steve z

Create New Trimmed Project
to create a new version of the current project that refers only to the footage you used in the selected sequence
so it sounds like ALL unused footage will be ignored, including parts of the clips that are unused?
Collect Files and Copy to New Location
to copy and consolidate the footage you used in the selected sequences.
so it sounds like ALL unused footage will be ignored?  What does "consolidate" mean?
What should I do?  I just want to move the "project" file and reestablish media connection.
Either way, this is what I got:
Thank you,  Steve Z

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