Site architecture is quite of an important factor when it comes to code/architecture optimization and an overall crucial step in SEO.
This video from SEOmoz goes in deep with a few examples, so that you can get a real grip of page structure and architecture.
No matter how updated is your sitemap, a correct site architecture is the first step towards a site proper optimization. The video also mention the potential effects of this procedure on usability, keeping always content at a one-click distance from every page.
Content structure is a pretty invisible task in any SEO project but absolutely fundamental. I have always seen positive consequences anyway.
A flat site architecture does not mean at all that you have to get rid of directories in URLs and these are my two cents to those articles. On the contrary, it is something to add to the click distance + relevancy distribution equation.
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