Joined: Feb 2012
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RE: Kindle Folders
Just to be clear, the collections on your Kindle are not folders (folders aren't supported by the Kindle). They are in fact just tags that are attached to the book. If you then sort your books by collection, they'll appear under all your different collections, but if you were to sort your books by author or title, they'll go back to just appearing in one big long list.
For the cloud on Amazon, just think of it as an external hard drive where all the books you've bought from Amazon are stored. On your Kindle you'll see an Archive listed, the books in this Archive aren't actually on your Kindle, they are books in your cloud on Amazon. If you mistakenly delete a book from your Kindle and don't have a back-up copy of it on your PC, you can simply go into your Archive and re-download it from the cloud.