Collections are a nice feature and I use it a lot, but:
1) The user interface for managing collections is poor at best.
2) Collections are only a partial solution. As soon as the number of books grows, the restriction of collection to only one level becomes more and more apparent and limiting. Directories with their unlimited depth allow for much finer control (e.g. first level for author, second level for series, third level for whatever [main series, side series...]).
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