I'd suggest the Kobo Glo (6" infrared touch, but might be harder to find now), Kobo Aura (6" capacitive touch), or Kobo H2O (6.8" infrared). All Kobo readers sort into collections out-of-the-box just by sending the books from Calibre to the reader and setting which tags or series you want as collections. All 3 Kobos have a backlit screen. Those who have both the Glo and Aura say the text is a bit sharper on the Glo, but it's being phased out and could be harder to find at this point. Patches to get even more customizable settings are available, there's no jailbreaking involved at all.
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