Yeah, it's a bummer. Two pointers that might help: I keep a text listing of my books on my computer. It's named 00-index, so when I copy it onto the Kindle, it shows up at the beginning. I can skim that list faster than I can skim the 36 pages of index ....
Then, once I pick a title, put the Kindle into alphabetical order, and press the letter that starts the title. That'll get you there faster.
Ok - #3 (free bonus tip!) You *can* put books on your SD card into another folder. If you don't name it "documents" the Kindle won't see it. But you can put books into "LATER" and "DONE" and then use any handy computer or pda to move them into/from "documents" when you want more/less items in your index display. In other words, carry them with you, but don't clutter your index until you want to.
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