I'm the webmaster of Horny Hot TGP (
www.downlinefiesta.com )and I prefer placing links in categories for several reasons:
1: The visitors can go easily go to the kind of pics they want to see.
2: You can target a visitor who wants to see lesbian pics in the lesbian section with lesbian banners/sponsors.
3: The time a visitor has to wait to load a big link page with 500 links is longer then when the have to load a specialized page with 100 links some times