Having a collection this large seems a bit excessive to me. The typical application of collections is to group books into smaller similar themed books or series. I'm not sure what the purpose of applying it to that many books would be unless you had literally tens of thousands of books and extremely broad categories that need to be categorized. I'm unsure if a 8gb kindle would hold that many books. I suppose if you had a 32gb kindle, this would apply, but the real world need seems pretty narrow for this use case. Seems like just doing a search for a book/author would be easier.
Anyways, this is just a comment and not helpful to the issue, of course. As someone else mentioned above, after doing some googling myself, it looks like the limit for a collection appears to be around 1000 books.
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