Or do most people not put movies in actuall collection folders such as movies/Star Wars/Star Wars Episode One file
No, I don't think most people do that. I would wager that most people don't even have multiple root folders. I do, but that's only because I sort things into anime and non-anime, because I use different profiles with different custom formats to fetch each type of media.
The usual way to store media in Sonarr/Radarr is: /root folder/movie name/movie file. You can get more complicated than that, but why would you? There's not really any practical benefit to it, unless you're navigating the folders by hand when you want to play something, and have a lot of media. For example, Radarr doesn't care if you have 100 movies in individual folders in the root. It's not a human, so it has no problem telling you which movies you are missing from each series on the Collections tab, and can fetch the remaining movies automatically.