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'It's all fun and games until somebody looses an eye...'
It's obviously fine to play around with this, but I would strongly suggest that nobody should count on this behavior remaining reliable. This re-purposing of functionality that Apple most certainly doesn't intend for this use means they won't feel any responsibility to support it in the future, so you really wouldn't want to keep your only copies of any important files there. Also, it's probably safe to assume that either the files placed there count against your iCloud quota, or if not, Apple will be sure to cut this functionality off quickly if too many people start abusing their largess.

Also, I get it... but why? Dropbox works. It's got a polished front end on loads of devices, and the amount of space (after getting various bonus allocations) is larger for the same free price.

Love this idea. I've played with it before. The biggest drawback is that while your OSX devices can access the data via those utilities or alias or symlinks, the problem gets to be on iOS devices.
It might be better to turn your 'Goodreader' folder (or something similar) into the folder in which you put all your data so you can at least get to it on iOS.
This might also make it a little less susceptible to getting clobbered as being a directory with no approved app that uses it in the Mac or iOS app store. As in all things, make sure you have backups.

I just go to home folder>saved searches and theres a folder called icloud and I drag that to the sidebar in finder.

You can try dropicloud.com also.

Seems like the same thing as this hint: http://hints.macworld.com/article.php?story=20111029203029574&query=iCloud+mobile+documents

Can't use this method if you want to keep databases such as those of 1Password or Papers synced across multiple devices. Dropbox handles database syncing quite well and for some of us, this is the most important feature.

so true, no 1password. best to just use dropbox.

The new IOS version of 1Password can use Dropbox, iCloud, or both at once to sync the password database. Pretty cool.

iCloud Documents = another unfinished, unpolished Apple internet product.
If all the rumours are true Jobs wanted Dropbox and Dropbox did not want Apple....good move IMHO.

yeh.... or i could just use iCloud.

Please, some kind of newbies warning? I adore Apple--and iCloud does not yet warrant trust with document storage. Or originals. Period.
Besides, Steve introduced it as a sync service, and that it does fairly well. Okay, sort of. Five minutes on Apple Support will show that the MobileMe never died--except the good parts.

Free Document Software For Mac

Great post!! I was just looking for a simple, mac-osx-integrated way to cloud backup my files.
Very smart and useful suggestion.