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I have a little under a thousand books on my Kindle and I would love to have folders. It would make navigating those books far easier, and I too am surprised that Amazon hasn't released a firmware update to resolve this issue.
However, it is the big screen that can directly support PDFs that I really want. I purchase a fair amount of non-fiction (computer programming, mathematics, and science) and these kinds of books really aren't suitable for display on the Kindle (mathematics formulas, chemistry diagrams, formatted programming code, tables of data, large images, etc.) These are also the kind of books I would like to be able to carry with me and reference over and over again. I also imagine college students and even high school students would rather carry around a Kindle 2.0 instead of 50 lbs. of textbooks.
If I could view an 8 1/2 x 11 PDF on my next Kindle then I could see myself using the Kindle for far more than just reading books. I have a lot of paper work, research papers, and that kind of thing that I can easily convert to PDF and then just load them on to my Kindle. So, yeah, I'll upgrade as soon as it is available.
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