As far as my collection goes, I divide jazz into two: “Nice” jazz and “Evil” jazz. Nice jazz is what is on the shelves that my wife could browse, put on, and be more or less happy. Evil is… the other stuff.
Despite that, I do enjoy thinking in genres. Providing that genres are understood to not actually be real or concrete, they can be useful. The retrospective discovery of a genre, such as “rare groove” or “spiritual jazz” can help to move previously ignored (eg because not interesting when judged by the criteria of the time they were made) records into the forefront, as they are now judged by new and different criteria.