The problem is not really the number of books, but putting those books in collections. Sony really did a shitty job designing the firmware of this device, instead of just discovering what is in folders it has to keep a (single) file with all the information. So if you have 1500 books, that is 1500 entries in the xml file, and each entry is many lines since the author, date, type, etc... is also included, now if you start adding these files to some collection, then you have one entry per collection, and one more entry per book per collection, no wonder this file get so huge and the reader can't process it anymore.
To me it looks like Sony has a bunch of developpers without a software architect and/or product manager, they do whatever they think at the time without looking further for usability.
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