Making the "Contacts Tab" useful

Apparently we're stuck wtih this "Contacts" Tab, and I am currently being forced to scroll through my 300 person friends list, 3 to 5 names at a time, or have my IM / Contacts Window taking up half my screen, which is not why I have my graphics settings turned up, to render this box....

If you want to make this useful, give us a way to subdivide the friends list to multiple tabs on this window. So intead of having 300 friends and 25 groups

*Friends
*Groups

I can have many tabs for my friends list

*Friends (master list same as it is now)
*Good Friends
*Avilion Friends
*Club Hopping Friends
*Builders & Scripters
*Business Contacts
*Designers
*Who are these people?
*Groups

Please please fix this window, it's annoying now for me to check to see what friends of mine are online, and because of this, I rarely even check anymore and that's not good.

That might actually make sense, it certainly uses up the WASTED SPACE (hint hint LL) that the existing tabs occupy.