Thanks for that Steve, but that is not exactly what I'm asking, since both an SQL database and a text-file *could* be implemented in a "flat-file" way.
By "set of directories and text-files" I meant something that would be accessed in a "relational" way by the app, not just one mega file that I would parse line by line and turn into a data structure.
So I guess this would come down to the details. I was just trying to fish around and see if there is not some "beyond the obvious" aspect to SQL. There does not have to be; I can understand it's popularity purely on the basis of its ease-of-use, conformance to a certain standard, and universality. In fact, I probably will stick to it because of that...