Can a Library hierarchy be limited to just 2 or 3 layers?

With SharePoint, our users aren't happy yet with a metadata architecture and demand their folders. Management doesn't want 10+ layers of folders. Users aren't convinced using Views with 2 groups. Is it then possible to have a limit on the number of layers in a folder hierarchy, to have a hybrid approach with only 2 layers or less?  The end-result might allow the users to configure their folders: Documents library Folder 1 Folder 1.1 File 1.1.1.txtFolder 1.2 File 1.2.1.txtFolder 1.3 File 1.3.1.txt But the user wouldn't be permitted to create subfolders below that. I am not sure if it's possible to have a Layer 1 Document Set, and a Layer 2 document set, but with no further layers possible by the user.