Steve,
That is what I understood as well, the developer name would separate modules and files that were named the same. But, if you look in var/run/classes/XLite/Controller/Admin you will see all of the module controller files have been copied there. So if you write a module with a controller named Menu, and I do the same, I believe one would be overwritten or cause an error.
I guess I just need to test this theory...
