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I think we also need to keep in mind that we on this board do not represent the typical consumer user. We might all keep hundreds of books ready to read and want flexibility with different sorting methods, however many if not most of the ereader users probably keep a handful of books. Even a couple of hundred are more than manageable with title, author and most recent sort options. I know a ton of people who are now getting ereaders and most of them only have a handful of books on the device and they think I'm nuts with having a few hundred.
Irex have stated numerous times that this device is targeted at the same market that Sony, Amazon and B&N are going after and we know how they currently view folders. A flat structure with a couple of different sort options and a search feature is probably more comparable to how people would store their paper books. I doubt few sort them by category.
I'm not defending irex's decision or promoting one approach over the other, just pointing out that we are probably not the typical mass market user and that a more complex, but flexible approach could actually be a negative to the mass market.
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