By the way, I explored today how the Cloud Collections actually work.
Turns out, only "Kindle Paperwhite (2nd Generation), Kindle Fire HD (2nd Generation), Kindle Fire HDX, and Kindle for iPad, iPhone, and iPod touch" actually update Cloud Collections in real-time as of now. Make cloud changes on these devices/apps, and they will show in other listed devices/apps.
For any other Kindle or Kindle app, including Kindle for PC which I tested quite a bit today (the latest version), category import is a one-time, one-way deal. One-time meaning the time you update to 5.4.2 or the time you register a device or reading up for the first time. So, the first time you update or register a 5.4.2 PW2, it will import collections from Kindle for PC and other types of older devices, but after that if you change something in those older devices or the current Kindle for PC version, those changes will NOT come to PW2.
Of course it is possible Amazon will update other apps and devices to support "real-time" Cloud Collections later.
Here is Amazon's help text on it:
"To import a collection: With Cloud Collections, collections are automatically stored in the Cloud and can be synced between Kindle Paperwhite (2nd Generation), Kindle Fire HD (2nd Generation), Kindle Fire HDX, and Kindle for iPad, iPhone, and iPod touch reading apps.
Note: Importing collections from other devices or reading apps to Kindle Paperwhite (2nd Generation), Kindle Fire HD (2nd Generation), Kindle Fire HDX, and Kindle for iPad, iPhone, and iPod touch is currently limited to the first time you register the device or reading app."
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