On my site I have directory structure and sometimes I need to update it. But I wonder is it possible that some files are locked for reading? How do you resolve that?
Moving the root directory is actually better.
Remember DreamHost is on Linux systems, and there is no file locking issue like on Windows where you cannot move a directory while content has been used. Also directory move is usually an atomic operation, where moving all files from one directory to another directory is actually multiple operations.