A friend and I tried out that mod too. Our issue was that it was too many bags, we only wanted an arrow bag, a potion bag, and a scroll bag.
There is almost no incentive to sell potions, arrows, grenades, and scrolls. One bag for all of these would have been good for us too. (it's how I usually play the game is dragging them into a bag to bind to the hotbar).
Yes, I agree. That's why I think some kind of folder system would be ideal (right click on empty hotbar spot - and assign spell level/item type you want to display through it).
I tend to sell those items due to weight limitations. Carry over 20 granades you sporadically use, and it just seems a better idea to sell at least half of them.