The problem with URLs that hide their query string is that it makes it harder for others to extract the query string.
For instance, I use a log analyzer to examine referrer strings to find out how my visitors found my site (something I find quite interesting). But some search engines that hide the query string using a URL that looks like a long list of directory names, as you demonstrate above. This completely foxes my log analyzer, and I can't as easily gather up the most popular search terms for my site.
Also, purely as a counter-argument, I don't like the appearance of the URLs that hide query strings. They look messier somehow.