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I'm mildly proud of how I categorise my games on Steam and interested to see others' methods
(feddit.nl)
They're in order of likelihood of being played. Craig is a mate of mine who I play with when time permits.
I put the games I care about into genres. There's a lot in my library I don't really bother with though and I just lump that in its own category.
I tried that, but most genre folders have become pretty useless over time because they're either too similar to each other or somehow games found their way into wrong ones
I don't use the dynamic collections if that's what you mean. I have my own list of genres I care to categorise my games into, manually.