EDIT: re read article . Moving files into local disk deletes them on google drive and makes the moved versions useless links. Now agree with the author: that's goddamned terrible.
EDIT 2: actually the files are always links, but if the links are moved outside google drive the correspondi go data is moved into Google drive trash. See jamesaguilar below. Still goddamned terrible.
The real failure here is that you shouldn't be able to move the drive links out of the drive folder, since semantically that does not actually move the files.
(Filed a bug, but I'm not on the Drive team so I can't really take responsibility for this getting fixed. It does seem like a problem to me, but I don't know their infrastructure nor the limitations of shell extensions, so I can't really comment on whether a fix is feasible either.)
Or stop trying to force a connection between Google Drive's file view and Google Docs.
Move the links out of GDrive all you want, it should have no effect whatsoever on the hosted GDocs. They're just links, after all. Since when does moving or deleting a link delete actual data?
Someone at Google tried to force a connection that doesn't even make sense, and this is the result. Whoever decided that moving a link out of a folder should delete the hosted document should be fired.
There is very little you can do about this, google is okay with it because there's no official offline gDocs viewer/editor so in their minds it doesn't make sense to fill up your harddrive with real files that can't even be accessed on your computer. Also they warn you that those files aren't real under certain circumstances (I've seen the warning before, though I don't remember the context).
Google does not sync the data to you, just a tiny file with the same name as your data that bounces you to the website.