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I've got my books organized into folders on my Kindle. But, I suspect you are talking about the ability to see folders on the menu?
That would be nice, if only because you wouldn't have to page through so many books if they were sorted in folders via author .... or whatever.
As for reading order, what I've been doing is setting up reading lists, converting them to mobi and then putting them on my Kindle as a new book. So, for example, I've got my 37 (or so) Pratchett Discworld books listed in publication order, and when it's time for the next one, I just go to that book .... look it up .... and on to the next.
Since the "correct" reading order is available online for many authors, it can be a simple to take the html or do a block and copy. Saves having to type it.
(And, no .... I don't think I'm violating anyone's copyright by doing that anymore than if I xeroxed one page out of a book for my own personal use.)
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