First off, logically /lib should be a subfolder in /bin since libraries are needed to make executables works and are not an entity in themselves.
Rename /bin into /programs or some-such for clarity. /dev, /proc and /sys also belong together though I am not sure how. Maybe under /devices.
Crap like /etc should be all collected in /config or something clearly named.
No need for /sbin, /tmp, /var, /root, /home, and /media.
Make a /users folder. This would contain all user info. This is where /root belongs logically. And /sbin should be in /root logically. /tmp should only be present on server installs. A distro aimed at personal use should not have it. /var should be renamed to something clear like /logs and should be present in every user folder, not globally. /home should not be there at all. Just have /username (including /root) in /usr. /media, /mnt and other crap like that just needs to be in /dev
Bottom line: when a user fires up a GUI browser for their filesystem, they should see just a few key directories and their purpose should be obvious from naming without any training in Unix. /programs, /devices, /users, /config
On server installs, add /shared.
BTW, I am not a fan of oversimplification either. Do not dump all things into something dumb like /unix or /linux or /posix. The whole /windows business is a mess. Users are afraid of even peeking inside this huge folder.