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Ask yourself what purpose the categorization serves. If it's just to help you find the books you're looking for, then you may not need to go that in-depth.
In my case, however, I use a custom column that serves both as a lookup for the books, and as a simulated directory structure that I then use in my save-to-disk template.
This custom column, which I call "Hierarchy", goes into quite a bit of detail, including duplicating the series name in some cases. I also use the top level of the hierarchy to divide my books into virtual libraries.
So, for instance, my "How-To" virtual library might include "How-To.Cookbooks" as well as "How-To.Knots" and "How-To.Magic Tricks." My "Fiction" VL might include "Fiction.Fantasy.Tolkien.Lord of the Rings."
Despite what the manual says, you can store a directory hierarchy of arbitrary levels in a single field and use it to generate the hierarchy when you save to disk. My template converts "." to "/" to create the folders.
Finally, I use the View Manager plugin to switch back and forth between sorting by Author and sorting by Hierarchy as needed.
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