I googled - the PRS-950 has a seven inch display, e-ink pearl, 600 × 1024. So I have to agree that the Kobo Aura H2O would be a great replacement and a nice upgrade, given your other requirements. Even better than creating collections on the device, you can create and manage them with Calibre, meaning it's easier to deal with larger collections, and your collections are fully backed up in case of a factory reset or replacement device.
If it's too expensive for you and you're happy with a six inch screen, a Glo HD or similar would be nice.
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