Since gnome3 does no longer show the desktop folder contents on the
desktop, having 'Desktop' show up in the file chooser is confusing, at
best. Thankfully, GTK+ already hides it if it is the same as HOME. So,
for F16 I plan to change the default xdg-user-dirs configuration to set
Desktop=HOME. Existing users will not be affected by this change.
Matthias