If a file is moved to a new parent folder, it does not assume the permssions of the parent folder. Instead it keeps the permissions it had prior to the move.

There isn't a right answer here. However, it would be a time saver for me if it worked the other way. I tend to set permissions on the folders only. I would like every file in a folder to have the folder's permissions unless I directly set them otherwise. Right now I am sorting a large number of files in the root folder into different subfolders and for the users to see them correctly I have to remember to keep editing the folders and checking "Unify permissions on children". This is particularly time consuming when subfolders have different permissions than the parent/grandparent folder.

It is also slightly confusing that in the Main Options it says (in the help) that checking "Permissions Only By Admin" means "Permissions on items automatically inherit from their parent".