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I put most of my projects into a couple folders: Work, Household, Personal. I find this keeps my lists short enough to be manageable even on an iPhone.

When I'm actually _doing_ things, I don't look at projects at all. I look at Contexts. This allows me to "select a context and display only items for that context", exactly as defilmj suggests. When I'm at home, I want to see all the things for @Home, regardless of what project they're for. I might have "take extra laptop battery to work" in my @Home context, and I need to do that at home, even though it's for a work project.