Before the Collections feature, I didn't keep a lot of books on my Kindle because as others have mentioned, it was a nightmare to wade through all those books. However, after Collections was added, the largest number of books I kept on my K2 was 1200. I never experienced any type of performance issues with the devices.
Since receiving my K3, I have only loaded around 900 books. Since I mostly read series I have all of my Collections organized in that way. For example, Nora Roberts In Death series shows up as:
In Death - Nora Roberts, I organize all my Collections by character or series name and then author name.
I only keep unread books on my Kindle and delete once I have completed the series. If for any reason, I need to re-load or re-read the book, I just upload through Calibre.
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