This organization made more sense to me: First by language (as that's how most of us will decide which blogs to read) rather than blog "type." There is still a category for "Inactive." However, I haven't verified these blogs should still be listed there (edit: This is done now). I've also added a category called "Inactive Watchlist" which are the blogs in danger of being moved to the "Inactive" list.
Also, moved any active RSS Feeds to the "Feeds" page, and removed "Feed" links to inactive blogs.