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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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to xdg-user-dirs in Ubuntu.
https://bugs.launchpad.net/bugs/209513

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

Status in xdg-user-dirs package in Ubuntu:
  Confirmed

Bug description:
  Occurs during:
  * Ubuntu Gutsy upgrade to Hardy beta
  * Ubuntu 8.04.1 routine updates
  * Ubuntu 8.04.1 upgrade to Intrepid beta

  After upgrading, this dialog appears:

     Update standard folders to current language?

     You have logged in in a new language. You can automatically update
  the names of some standard folders in your home folder to match this
  language. The update would change the following folders:

     Current folder name:       New folder name:

     /home/jamie                      /home/jamie/Videos

     Note that existing content will not be moved.

  WTF?  (My home directory _is_ /home/jamie).  What is this trying to
  do?  Will it rename my home directory?  Or is it just updating default
  directory where Nautilus searches?  Or where downloaded files are
  saved??  (There's no Help button, btw.)

  The only sane thing is to say "No, thanks" (i.e. "Keep old names").
  Perhaps that's the wrong answer, but the dialog text isn't clear about
  what this change does, so I'd be foolish to say yes.

  Either (1) this shouldn't appear and show those paths, it's a bug, or
  (2) this dialog is correct, but the text should be better at saying
  that it's safe and merely changes default paths of no great
  consequence.

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