Wow, this bugginess is still around in 16.04.  Today after a minor
upgrade this offer to change folders came up.  I initially declined the
offer but when it persisted I accepted and my Download folder with 13 GB
of data disappeared - poof - and was replaced with an empty Download
folder. Fortunately, after reading the above comments it seemed the data
was still around and turned out to be fairly easy to locate.  The
Download folder was tucked away in Home's .cache folder.  A new Download
folder had been created, so it was a simple matter to merge the two and
everything is now back to normal.  What fun :-/

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https://bugs.launchpad.net/bugs/209513

Title:
  After upgrade, "Update standard folders to current language" threatens
  to rename your home folder

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