Honestly the Invetory screen itself looks great, I think it would be best to have a small menu to sort the items by type or alphabet. That's what I would want, but the choice is up to you.
I did the inventory sorting this way in a sequel's code some time ago, I'll try to look if it's possible to implement it in the first game in an easy way, too. They have completely different and separate source codes, so that's why I didn't do it earlier.
