[JSWolf]

Originally Posted by eschwartz

You can setup collections management on any jailbroken Kindle.

[GUI Plugin] Kindle Collections -- calibre plugin to manage and export collections to the Kindle
LibrarianSync -- KUAL button to import collections from the list generated by the plugin.
KUAL itself
python packages are here, you will need this to run LibrarianSync.
Jailbreak, obviously.

But that means having to jailbreak and you risk a firmware update not being able to be jailbroken. So the answer is to never buy a Kindle if you cannot live with it in the default state of being limited.