This is how I go about it, too. I also use the favourites feature to self-curate games to reduce choice anxiety when I want to play something.

Whenever I buy a game, it gets favourited, whenever I'm done with a game, it gets unfavorited.

If I play some game a lot or feel like playing some game when I have time, I favourite it.

This way anytime I want to play, I have a short list of games to consider, instead of trying to look through my whole library.