FWIIW:
We're using file-storage with webdav for day to day filestorage and find ourselves not using the native Windows webfolders as they still have some issues.
Instead we use webdrive, a commercial webdav-explorer extension for windows. See http://www.webdrive.com. There is an evaluation version available. Using webdrive you can use the webdav folder as a fully functional network folder. You can barely tell the difference between a smb-share or a webdav -share. SMB feels a bit snappier, but in terms of actual performance there's not much difference.
Rgds,
Jeroen