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As for sorting by install status without excluding other games...
List View from the old Steam Library UI, which used to be a thing, was a spreadsheet-like display that had a column for status (used for multiple statuses, including ready to play, not installed, Cloud sync conflict, update available, etc.), which you could click the header of to make your whole list sort by status. It also had a column showing size on disk, which IIRC was blank for games that weren't installed, and you could also sort by that column by just clicking the header.
And in List View you could also reverse-sort by just clicking the column header a second time.
Valve should reimplement List view. They took it out in the 2019 UI update and haven't replaced it with anything even remotely like it.
Named it Installed and specifically put a space before the I so it would appear at the top. Now every game I install gets automatically put there, and when it's uninstalled it vanishes.
Then I still have my normal list below (minus this damn 4x category) with favs still at the very very tippy top.