Well finally it's caught up. Fortunately I already have this capability on my iPad mini with Skydrive / Onedrive for years now. Welcome to the club.
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Not really. iCloud has always been about storing documents. It just stored each applications documents in its own container. Now we've got a folder that can store/view documents but i'm guessing the "container" is still there and just invisible.
If we're looking at where iCloud Drive differs from Dropbox/One Drive I'm going to guess that it's a bit more robust on the security side (Sandboxing)