Unfortunately, I don't have enough knowledge of the device's memory management to come up with a way to increase the available memory. We (the developers) have been trying to do that for a long time, since the instability of games/apps is likely to be a memory issue as well. But so far, no luck...
Adding an option to switch read/unread is probably not feasible, but I'll see if I can find a way to mark all books at once, and/or mark a selection of books.
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