You're going to be more specific about what concerns you about the current 
format. The Elm community likes to work together towards solutions, not get 
into debates. To that end, the tooling and conventions create a 
multi-layered system of documentation:

As in any language, *code comments* are used to document *individual lines 
of code* whose meaning is not obvious.

*Declaration comments* with the {-| prefix are used to document *public 
values and types*. (A "value" is a function or a definition.) These work in 
concert with the type annotation. Because the comment and annotation are 
displayed together in the rendered docs, they are written together in code.

The *module comment* at the top of the *file/module* gives information 
about the module: why it exists as a logical grouping of code. This comment 
also includes @docs declarations to define the order that public functions 
are documented. They are usually separated by headers (it's just markdown) 
and each section may also include a comment. Elm encourages library authors 
to use these features so that their module docs are sensible when read top 
to bottom. There is also a way to preview docs 
<http://package.elm-lang.org/help/docs-preview> prior to publication.

The *README* for each *package* includes information about what the package 
does, how to start using it, and what to look for in the more detailed 
module docs. They may also include instructions for filing bugs or 
upgrading from previous versions of the package or language.

Finally *guides and blog posts* will go into depth and examples on how to 
accomplish a* useful unit of work*, such as JSON decoding or refactoring a 
union type. These may focus on a module from the core library, one or more 
third-party libraries working together, or a language feature.

You will notice that READMEs and guides are not source code files, but are 
valuable parts of the hierarchical documentation system.

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