Why yes, he can I don't know about others but I like to have start menu 'folders - e.g.
System
Internet
Games
And so I install software (where I can) in the sub folder on the start menu which makes organisation a bit easier. The problem with dragging and dropping shortcuts around is that when you uninstall the program, the uninstaller fails to find the shortcuts (they've moved) and so you have to manually remove them. It's trivial to make an installer as you where you want your shortcuts to go - shame more people don't do it!