We've only had a line for about 2 months & I absolutely LOVE hanging my clothes out (right now when it's so warm & sunny & wonderful out). We have a fabulously looooong line so I stretch things out fairly taut & use 2 pegs per item (except the really small things). I understand the idea of the water running down to the lowest part of the garment but I find that the clothes are so well spun from my machine that there really isn't enough dampness for that & by hanging the waistbands down they are loose in the breeze as opposed to folded against themselves on the line.
I have a couple of those underwear/sock things (dollar store in Canada or even Wal-mart or Canadian Tire) but usually just use one. I hang it beside the line with the pegs & put the little things on it as I go & then hang it on the line so it gets more air at the very end.
We have a great bench right beside the line so as I pull things off I fold everything into piles & then put the piles into the basket in a logical fashion - unfortunately the baskets tend to sit in the hallway for a long time sometimes (usually until I need the basket again).
I try hard to do a load a day although with our new larger machine it's not as necessary.
My MIL likes to group like items together but I kind of like the messy look of everything intermixed.