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IMNSHO, folders are good if:
- you have lots of books on your device
- are comfortable using a file explorer
- are happy to organize those books yourself
I think any of the above takes you down to a minority of ereader users and all together takes you to a very small proportion indeed. Small enough that the "big names" don't care about their preferences.
"But why not simply make it an option? Those users that don't need it don't have to use it." I hear you say. Mainly because customer service costs money and file explorers can and do confuse people. Options confuse people. Don't believe me? Check a few random PCs belonging to other people and see how many have all their documents on the Desktop.
As for epub capability and using the cloud instead of external storage - well, it's almost as if they want to make it easier for you to use their ecosystem isn't it? It's like they make almost no money off you unless you also buy your ebooks from them.
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