The only issue with this is that I think it won't recognize the Dropbox folder in the old location, and will re-download and overwrite all files instead of checking and syncing the directory that's there. I'll give it a try, and report back my find.
Edit: Upon attempting to move the Dropbox folder to a previous location (where my old Dropbox folder still is), this error is shown:
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Target folder is your current Dropbox!
It still thinks that's my current directory, even when Dropbox states in its preferences that the current directory is still in my home root.
On top of that, I had deleted both the .dropbox and .dropboxd folder from my home folder before doing this! Is there some hidden configuration directory somewhere? I think that might by the culprit. (I already checked dconf, gconf, and mateconf because I had previous installs with them)
Edit 2: I just thought of something. I created a symbolic link ~/Dropbox pointing to my dropbox folder on a separate drive. I thought I installed dropbox with the actual location in its settings (not ~/Dropbox), because I know it's a bad idea for Dropbox to operate in a symbolic link (they claimed so on their wiki or forums).
However, I may have had it set up in the symbolic link. I can't remember. I wasn't having issues, and for me, if it isn't broken I don't need to fix it. lol.
Edit 3: Well, apparently that "current Dropbox" error shows up regardless of where I try to move, whether the old one is there or not.
I'm filing a bug.
Bug report here