MySQL creates a distinct directory for each database you create. For each table you create, it creates three files, Two remain rather small and I believe handle the table structure, the third grows with the data. I once helped build what started out as a database of 1,590 tables. We broke it down to 159 databases of ten tables each and got far better performance. Unlike postgres, you can actually backup and restore the filesystem files, though using the dump function gives you a more portable snapshot of the data.
-- Hugh