The folks at ZDNet make several good points about Singles:
http://www.zdnet.com/blog/btl/amazon...20?tag=nl.e539
The one I find most compelling is that the shorter content would be a good fit for the Kindle apps on smartphones. For commuters.
I've also seen several people suggest we might see the return of serials.
The business case I find most interesting is for back list short fiction. In many (most?) cases authors retain rights on those stories so there's no need to get the BPHs involved. And for a lot of older magazine-published stories even a few hundred copies sold could deliver move revenue to the author than the initial sale. There's a lot of author good will coming Amazon's way if this thing takes off.
As for organization, well at a minimum, Kindle has Collections so setting up a tag for shorts is easy. Or maybe there will be a firmware update that will physically segregrate them the same way news and magazines are.
Any way you look at it this is going to be a relatively high-visibility channel for short-form content which has few if any outlets these days.