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That's exactly what I do. Of my roughly 150 projects (over 400 actions total), more than half are on hold at any given time. Sometimes, I make a project active, complete some actions, and then put it back on hold because its relative priority has changed.

Another useful habit is using the focus feature to narrow in on just one folder in planning mode. Only actions from that folder will show up in context mode too. This makes it easy to clear personal items from view while I'm at work, for example.

I use very few due dates, certainly fewer than 10 total.