Why cant Itunes use a user specified watch folder

Question

The Zune (RIP) watch folders were extremely easy: tell the player where to look and the service will add all music from that location verbatim and automatically rescan, importing any new files added to the folder. Any music I purchased was saved to the watch folder.
This worked long before ITunes (Apple) decided to add their own watch folder. To be honest I do not understand it. I moved my music from my primary music folder over to the "Automatically add to iTunes" folder. I guess the music was imported automatically as the name suggests however no music files remained, just empty artist folders. It seemed to just create more duplicates ( Although it seems duplicates are created whenever I mess with the folders.
Im tired of reading responses to "how-to" forums suggesting that tracks need to added manually. Zune is not given much credit for doing it right the first (and only) time. My point is the inconvenient method is usually posted without reference to an alternative. This alternative should not require third party applications (which are still are not as automated as the processes in Zune).
Sorry for the long post. I have already wrote about my ignorance on the "Automatically add to ITunes" folder. I would give anyone credit for providing any explanation in depth about that feature.

Answer 1

I moved my music from my primary music folder over to the "Automatically add to iTunes" folder. I guess the music was imported automatically as the name suggests however no music files remained, just empty artist folders.
Correct. iTunes only cares about the song files. It creates its own Artist/Album folders based on the ID3 tags in the song files.
It moves (not copies) the files to /Music/iTunes/iTunes media/Music/ under the new /Artist/Album/ folders.
It seemed to just create more duplicates ( Although it seems duplicates are created whenever I mess with the folders.
You mean in iTunes, you now have duplicate songs?
If the song was already in iTunes and you add it to this folder, it will add it  to iTunes again.
You can delete the duplicates in iTunes (which will delete the duplicate file in the iTunes folder).
See this -> http://support.apple.com/kb/ht2905