Not much has changed in the two months I had it so far, no folders, and generally less practical.
The most annoying feature (not stuff that's missing) is that for some reason when you press the PS button they bring the bottom menu, which is kinf of like the long press menu of the PS4. The idea works, because it let you control sound output, volume, shutdown, etc. but it defaults to a stupid news card that sits above the menu itself, which kind of defeat the purpose of bringing up a shortcut menu... long press on PS brings you back to the games list--which has no folders/categories, and the library view still refuses to default to "installed/alphabetical" grid view (which should be the default view on the dashboard, maybe with a row of recent games at the top, but that's all we really need).
It's still convenient, but it gets more in the way than the PS4's UI did.
However, I have put all my PS4 games on an external drive and they made it easy to transfer PS5 games to and from the internal drive.