When starting a "move item" action, we currently open the "move" dialog at the root node. To avoid forcing the user to re-orient himself, we should actually open the dialog at the exact same location where the "move item" action was started.
Showing a dialog for a move action already represents quite a rapture in a user's flow. We can alleviate some of the pain that causes by presenting the users with a view he saw before the dialog was opened.
Apart from the current location and the root node location, there's no other sensible default for a move operation, since what a good default is depends a lot where you want to move the item to. The current location is often a better default as you typically stay in the vicinity of where you currently work. This can also be deduced from the fact that most negative feedback we get on the "move" dialog mentions that you have to "re-open all folders to get where you were before".
Apart from opening the "move" dialog at the same location you left off from, we're also going to show the item you're actually moving (to help in recreating the same image after the dialog opens) and to expose the root node (to make it clearer how you move things to the top of the hierarchy).
Both these changes are already shown in the attached wireframe, but will be added in separate steps (see linked issues).