This structure should work well for small and medium size web applications or more document-focused websites. It provides a balance between co-location of component files and separation of components by function.
A 'layered' approach can be used when starting a build using this structure, starting with base styling, a few reusable components and some of your favourite utilities then building each space up.
The aim of this structure is to keep it obvious as to where things go, be able to define areas of ownership and importance and to keep things out of your way when working in a space. This structure scales well to many hundreds of components and works well with a single team workig on a frontend project.
In general, everything should be viewed as some type of encapsulated and independent component.