Just a note for Kindle Touch users:
I just released
Collections Manager, which also allows to hide items. In combination with the
JBPatch password protection, that should cover most of the privacy aspects for Kindle Touch users.
It also has the advantage that it doesn't change any files or directories, thus not messing with the full-text index or requiring re-indexing of moved files. I just tried and verified that files which are hidden from the home directory (using Collections Manager) do not show up in search results either - how cool is that?
Sorry for the blatant advertising