You dont necessary need to create folders for url to look pretty. if you have dynamic urls, i would advise use of .htaccess rewriting rules for url it would make the url look as if its a path yet its a variable
.htaccess
are useful for enforcing the Pretty URLs. They are useful in that they always helps you to boost up search engine page ranking and they are also user Friendly. It helps to make URLs looks neat on the browser address bar And not necessarily does it have to be an actual folder.
An example
Original URL.
http://flickr.com/users.php?id=username&page=2
Rewriting Friendly URL.
http://flickr.com/username/2
In the .htaccess file you would have something like this for it to happen
.htaccess file
//First Parameer
RewriteEngine On
RewriteRule ^([a-zA-Z0-9_-]+)$ users.php?user=$1
RewriteRule ^([a-zA-Z0-9_-]+)/$ users.php?user=$1
//Second Parameter
RewriteEngine On
RewriteRule ^([a-zA-Z0-9_-]+)/([0-9]+)$ users.php?user=$1&page=$2
RewriteRule ^([a-zA-Z0-9_-]+)/([0-9]+)/$ users.php?user=$1&page=$2
To capture the variables in php you could have something like
php file
<?php
$key=$_GET['key'];
if($key=='home')
{
include('home.php'); // Home page
}
else if($key=='login')
{
include('login.php'); // Login page
}
else if($key=='terms')
{
include('terms.php'); // Terms page
}
else
{
include('users.php'); // Users Gateway
}
?>
You could learn more about usefulness of .htaccess as you google is usage for example my reference pretty url on 9lessons