Is There Any Way.....
 

To rearrange the contents of the Knowledge Book (primarily the Spells section) via a file of some sort? It would be so much faster and easier to do it this way rather than doing it manually (in-game). Or is this kind of information/file kept server-side?

Yes it is server side.

I was afraid of that. Thanks.

Well, how about adding a filter to the book then (a la quest journal)?

Possible filter list:
Buffs/Debuffs
Heals
Offensive
Miscellaneous

Or would something like this need to be implemented by SOE?

Not possible, however SOE is adding some sorting functions to it in LU13.

Good news! :)

Thanks