I agree that we should reword the docs here to not give a clear preference for either style. Clearly there's good arguments for both.
FWIW in VSCodium, the following helps a lot with mod.rs files (it fixes the "tab title" issue mentioned in the OP):
"workbench.editor.customLabels.patterns": {
"**/mod.rs": "${dirname}/mod.rs"
},
That describes my style pretty well, too.
I only recently discovered this and was quite surprised, too.