Google Drive is actually a 'flat' model, where every object is identified by it's unique ID.
So, when an object (file/folder) is created, it gets a unique ID. The object may/not have content. Everything else is 'metadata'. The tree structure of popular OSs is actually 'faked' by metadata links (parent links). That means in Google Drive you may have multiple children with the same metadata (title/name) in a parent object. And you may also have multiple parents for any child object (single object appears in multiple parents' folders).
All this rant means one thing for your situation:
Once you create a file/folder and get hold of it's ID, 'creation of a new file with the same name' can be accomplished by modifying it's content and/or metadata (you can see a typical example here).
If you take the path of delete/create (which is also possible, but had not been until recently), you are actually:
1/ modifying the original file/folder's 'trashed/deleted' metadata
2/ creating a brand new object with a different ID
Think twice before you select the method you use. UPDATE method is a 'one-step', approach preferable in async environment (create MUST wait for successful delete). On the other hand, if you use DELETE/CREATE approach you may be able to take advantage of the fact that 'trashed' object will be around for a while.
Good Luck