The file system layout is constrained by how dependency resolution works. For example, a require() call has a very (computationally) simple algorithm.

I certainly agree that your suggestion simplifies file-system layouts. The tradeoff is that the complexity shifts to other parts of the system.

That said, I'm not a fan of the v3 approach. I'd have preferred a central package cache with a structure similar to your suggestion. I'd add that each package in the cache should have all of its dependencies resolved in its own /node_modules/ dir with symlinks. Unfortunately, I still can't see a nice way to handle peer dependencies. Peer dependencies require the ability to walk up the file system to resolve, which you can't do with symlinks.

With that approach, the module loader needs to know which version of a module to load for you when you require() something - in the general case that can't be done without parsing your package.json . This would require changes to node itself, not just npm, as well as all the external tools that implemented node's current require algorithm.