Previously when the user wanted to add a library, it would conveniently ask them the navigate to a directory and select a jar, and it would by default name the library based on the jar name. Now the user is prompted for the library name upfront which is not as convenient.
The bigger problem with the current behaviour is that IDEA doesn't remember the last selected directory. For example if I had a jar and then want to attach sources, the file navigator takes me back to c:\ and I have to navigate back to that directory. Same goes for attaching javadocs. Finally, after one library is added and the user wants to and another library, previously the file explorer used to default to the last libraries path but now it starts off at C:\ . Typically most third party libraries are grouped together (like a maven repository and having to navigate to the path starting from the root path is a real pain. I'm not sure why this behaviour was recently changed. It used to work great in previous versions of IDEA.
As for the first problem, with the addition of the feature "jar directory", it is not clear what action the user would like to do before library creation: whether it would be "add jars" like it was before, or the user would like to add a "jar directory". So now an empty library is created and user can add jars or jar directories using the library editor. For convenience a dummy name is generated ("Unnamed") and later could be changed easily.
We are going to add some heuristics for library naming as well: so if the default name was not changed by the user , the library name will be changed to be the same as the name of the jar/directory selected.