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I played around with the audiobooks as part of iBook a bit. The good news is that you can organize audio books in various categories and put them in a manual order. Audiobook support has been spotty since they went with Music Match. Using iBooks, I can get more or less what I had via playlists without Music Match. (If you have Music Match turned on, then your audiobook playlists disappear).
The downside is that it's still not suitable for use in the car where I want it to automatically progress to the next book when a book ends.
The odd thing is that it's still part of iTunes on the computer, but part of iBook on the iPhone/iPad/iTouch. I have no idea how you can organize the audiobooks on the computer and have that organization reflected on your iDevice.
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