Sony is definitely aware that this feature is a highly requested feature. And they have been relatively responsive with two firmware upgrades already, and not locking down the device too tightly against the numerous user "hacks" that we have seen thanks to igorsk's great universal flasher.
Count me in among those who would really like to see a hierarchical system for books. However, while I first considered the SD card essential for storing books, I have found that the internal memory is sufficient for me. I wouldn't want more files on it until we can delete directly from the Reader anyway.
On the other hand, it would be pretty awesome if I could keep a whole library on a 1 or 2 gig card and not have it "mess up" my main book list for internal books. Even better if I could transfer to/from the SD card from the main internal book list or across folders. That would make the delete function not as important also, as I could use a "Deleted" or "Completed" folder to keep track.
As it stands I still consider the SD card slot important, but only for two things:
1) Music, but not often, mostly because I never am sure if the music player is off or not, and it's not real easy to navigate.
2) Passing books to the reader without having to use the connect software and a cable.
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