I think people are looking for the feature like in OE where you could
organize contacts into folders and when you are sending an email you work
from the contact folder that your particular group or contacts are
in....folders are different than groups.
I doubt that Windows Mail will get new features, since Windows Live Mail is
out.
There are folks from MSFT that participate in the newsgroup for it, and
respond to feedback.
microsoft.public.windows.live.mail.desktop