I have currently some 600 books in 40 collections on my PW2. About 100 of these are yet to be read; the rest are a mix of books I have read in digital form only or are digital copies of paper books that I read and reread prior to going digital several years ago.
The first fifteen or so collections are numbered, and are mostly sorted by genre, plus a TBR collection, a currently reading one, and an "up next" group that are books I've pushed to the top of my reading list. The remaining collections are either author specific or series specific, and fall in alphabetical order after the numbered ones. All sorting was done directly on the Kindle (starting with my K2). Non Amazon purchases or freebies are added via the Send to Kindle function--there are perhaps 20 or so of those. At this point, all my books still fit on my device, and they're all in Collections.
The entire library is backed up onto hard drives; that's really all I use Calibre for. I don't use it for sorting. I'm a Calibre lightweight at best.
As to the accusation of being a so-called collector as opposed to a reader, I typically read 5-8 books a week, all on the Kindle. Some are new, others are rereads. (I also read a large number of RSS feeds daily related to my interests, via Feedly/Newsify on iOS. Let's face it--rabid readers will read a cereal box if that's all that's available!)
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