I'm just avoiding any issues by using Calibre plugboards instead of collections, but I'm not really that bothered about using collections. I don't store a lot of books on my Kindle, nor do I sync between devices (I use my PW & a Sony 350 so 'sync' manually!), but that's not really an answer for many people.
Even though Amazon have tried to improve things, what they've done with collections is really a pain, and a bit like Josieb1, as much as I like my PW2, I'm not sure I'd replace it with another Kindle in future unless there are changes.
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