Privacy Settings Folder Wide

If I setup a folder and assign it a privacy setting of something like a person's name and then the uploading page shows itself should the files being uploaded to that folder not already be assigned the same privacy setting?  To me this only makes sense why set the folder for one then after uploading have to choose it again?  If I want it to be different I would not put it in the same folder and if I want one file to be different I can manually change it to a different privacy setting...I hope that makes sense as the default is public or whatever I set it to but if the folder is set to a specific privacy setting so should all the files in the folder about to be uploaded...