+10. I really disliked having the software decide that stuff for me. I know where the file is, and know how to find it. Maybe I just have too many images for that system to fit.😕
LR decides nothing for you.
LR Catalog = a diary of every rendering and display change you made to an original file.
LR Library Panel= a virtual display of how the original folders/files are organized on your HD.
Catalogs have no direct relationship "with where the file is".
The LR Library tells you exactly where and how the images are located on your HD. In LR the files on your HD are virtually mapped to the LR Library Panel. Your OS determines where the folder/files located. LR just adopts your existing file organization[1]. Adding (Import) new images creates new folders/files on your HD. You always know exactly where the original images are located. The limit to how many images can "fit" is determined only by the limits of your HD storage space.
The Catalog can be understood if you think of it as a diary. Every change you make to an image is recorded in the Catalog. This means the original files are never irreversibly modified. It also means it is necessary to have a back up of the LR Catalog. I have two real-time back ups and two more recent back ups. One disadvantage of the Catalog is over time it can become very large.
In LR you can make virtual copies. These do not exist as files on the HD. Virtual copies do not exist in the Catalog either. When you view a virtual copy, LR goes to the Catalog; finds all the rendering and display parameters you once applied to that un-rendered image; and displays a version rendered with those parameters. Even if you don't use a virtual copy LR does the same thing. The advantage of virtual copies is you can save and compare different renderings for the original image.
[1] This one-to-one mapping has one consequence. After you start using LR, you should only reorganize, move or create new image folders using the drop and drag features of the LR Library Panel[2]. These changes physically change your HD organization via background OS commands executed by LR. The LR Library and the OS Folder/file organization are always identical.
[2] If you move folders and, or files just using the OS, LR will lose track of them. It is possible to teach LR where you moved the Folders and, or files. This can be very tedious if you decide to use the OS, instead of LR, to make significant organizational changes.