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Collections are a way for you to organize kata so that you can create your own training routines. Every collection you create is public and automatically sharable with other warriors. After you have added a few kata to a collection you and others can train on the kata contained within the collection.
Get started now by creating a new collection.
Fixed the typo.
Josh is correct. This is no longer an issue in the new system, which we should be rolling out to the entire user base withinin the next week or so.
In the new Docker system (which can be enabled in your account settings) the behaviour is as you describe in your 'worst case'.
However, that's not the standard. It's an implementation. They assumed nobody would use more than 255 classes, and with that assumption they can get a performance boost.