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My personal opinion is that the Kindle really sucks at navigating its library. So I keep around 12-ish books on mine. About half of those are potentials for my "next read", and the other half are previously read books in a series that I'm reading - in case I need to go back and refresh my memory on some character or event.
All of my library management and browsing are done on my computer using Calibre. My eReader is just a temporary holding device for books of immediate interest to me. It's just too slow and clunky and feature-poor for me to have any desire to manage a library with it.
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