Yeah... I just noticed that, too!
I wonder how users will typically install this. My guess is that inside another folder will be ideal because of the fact that the directory has to be made writable.
Your friends over here at WebAssist! These Dreamweaver extensions will assist you in building unlimited, custom websites.
These out-of-the-box solutions provide you proven, tested applications that can be up and running now. Build a store, a gallery, or a web-based email solution.