Basically, a lot of people seem to dislike the new PW1/2 post-5.4.0 firmware because of all kinds of things to do with Cloud Collections, including this. I just give Thanks that I still have my trusty Kindle Touch.
What you are seeing is all the books in your Kindle Cloud that are in a collection but not on the device. Amazon decided to overlap Cloud (formerly Archive) view and show you a bunch of useless entries that if you wanted you would've downloaded the book.
