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That's one of the reasons that Apple makes many different sized iPods. Some people like just a hand full of songs at a time while others like their whole collection available.
I personally use collections for a number of purposes. First I have one collection that has my "to read" books. Then I have collections that have books by specific authors or series (for example). Last I use collections to group books by subject matter. There are ways around all this, for example, create a rtf file that lists all my books listed by title, author, series and subject, but it's not nearly as natural as using collections. It sure would be nice if I could create collections on my mac or for that matter, if you could put books that are in the memory chip in collections.
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